JUNE 2023
SPECIAL EDITION FEATURING :
> Regulation B Background
> Identifying If Your Institution Is Impacted by the Final Rule
> Compliance Dates to Be On the Lookout For
> Collecting the 20 Data Points
> Understanding Demographic Breakdowns
> And Much More
SMALL BUSINESS LENDING
Understanding the Impacts of the Regulation B Final Rule On Small Business Data Collection
On March 30 , 2023 , the Consumer Financial Protection Bureau ( CFPB ) issued its long-awaited final rule on small business lending . Financial institutions have anticipated the coming of this rule for over a decade , as it is part of the Dodd Frank Act . Its purpose is to facilitate fair lending and improve the lending opportunities for women-owned and minority-owned small businesses . The CFPB intends to effectuate this by requiring covered financial institutions to collect and report 20 data points , including geographic and demographic data , lending decisions and the price of credit , for covered applications from small businesses . The agency stated the data collected under the final rule will constitute the largest and most comprehensive data in the United States on credit availability for small businesses .
The small business data points required by the final rule to be collected and reported , and subsequently made publicly available on the CFPB ’ s website , could potentially result in fair lending violation allegations by plaintiff attorneys against financial institutions based on this new information . Besides prudential regulators , this information could also be the basis for actions by the Department of Justice , Federal Trade Commission and state enforcement agencies . There is the chance the information could be the basis for third-party challenges to regulatory approval for proposed mergers and acquisitions .
Learn more about the new rule as Doeren Mayhew offers insight into what it requires , how it could impact your institution , and when and if you must comply .