WASHINGTON, D.C. – Consumer and small business advocacy groups yesterday urged a congressional subcommittee to ensure that entrepreneurs, especially historically underserved entrepreneurs, have fair access to the capital needed to build and grow their businesses.
The Center for Responsible Lending (CRL), the National Association for Latino Community Asset Builders (NALCAB) and National CAPACD submitted a letter to the Subcommittee on Economic Growth, Tax and Capital Access from the U.S. House of Representatives’ Committee on Small Business urging the Consumer Financial Protection Bureau (CFPB) to issue its final rule on Section 1071 of the Dodd-Frank Act by the end of the month and urging members of the committee not to obstruct or weaken the final rule, which requires financial institutions to collect and report data on credit applications to the Bureau and the public.
“We believe that a robust 1071 rule will spur entrepreneurship in communities that traditionally have lacked sufficient access to capital and lead to increased economic growth and an expanded pathway to economic prosperity for more Americans,” the letter stated. “Given the significant benefits of small business lending data collection, it is essential that the members of this committee and all stakeholders allow the CFPB’s final 1071 rulemaking to proceed without any additional delay.”
Section 1071 was designed to help government agencies, including the Small Business Administration (SBA), as well as state and local governments to monitor the small business lending market and ensure that lenders do not violate anti-discrimination laws. The rule also enables regulators and lenders to update existing lending programs to better meet the credit needs of historically underserved businesses.
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