House Dems push CFPB to write small-business loan reporting rule

House Dems push CFPB to write small-business loan reporting rule

House Democrats have joined their colleagues in the Senate in calling on financial regulators to expedite a rulemaking that would force financial institutions to collect and report data on lending to small minority- and women-owned businesses.

In a letter this week led by Reps. Donald Payne Jr. (D-N.J.) and Chris Van Hollen (D-Md.), 82 House Democrats asked CFPB Director Richard Cordray to centralize small business lending data to help lending institutions gain a broader understanding of the credit needs of small businesses.

"Analyzing access to credit and removing barriers to small business creation becomes imperative when considering the significant role of small business on job creation; small business lending has plummeted since the Great Recession," their letter said. "Transparency in small business lending data is the key to understanding the credit needs of women-owned and minority-owned small businesses.” 

The CFPB is being asked to implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a rule known as Regulation B. In an April report, the CFPB said it’s considering how the bureau might work with other agencies to, in part, gain insight into existing small-business data collection efforts and possible ways to cooperate in future efforts. 

The letter from the House side comes a little over a month after Senate Democrats wrote the CFPB to push the agency into issuing a rule. The lawmakers said data collection efforts are fragmented and provide an incomplete picture of lending in the small-business marketplace.