CFPB to Hold Symposium on Small Business Data Collection

Logo for the Consumer Financial Protection Bureau
Logo for the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) will hold a symposium on Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act or DFA) — Small Business Data Collection.

Section 1071 directs the CFPB to collect data on lending to women-owned, minority-owned and small businesses. The purpose of this section is to facilitate enforcement of fair lending laws and enable communities, governmental entities and creditors to identify business and community development needs and opportunities of women-owned, minority-owned and small businesses. "Think Home Mortgage Disclosure Act (HMDA) reporting but for small businesses," said Sharon Turley, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues.

Among other things, Section 1071 requires the bureau to issue implementing regulations and mandates certain information be compiled, maintained and reported to the CFPB. The information required under Section 1071(e)(2) includes:

  • The number of the application and the date on which the application was received.
  • The type and purpose of the loan or other credit being applied for.
  • The amount of the credit or credit limit applied for, and the amount of the credit transaction or the credit limit approved for such applicant.
  • The type of action taken with respect to such application, and the date of such action.
  • The census tract in which is located the principal place of business of the women-owned, minority-owned, or small business loan applicant.
  • The gross annual revenue of the business in the last fiscal year of the women-owned, minority-owned, or small business loan applicant preceding the date of the application.
  • The race, sex, and ethnicity of the principal owners of the business.
  • Any additional data that the Bureau determines would aid in fulfilling the purposes of this section.

Section 1071(g)(2) provides that the bureau may adopt exceptions to any requirement of this section and may, conditionally or unconditionally, exempt any financial institution or class of financial institutions from the requirements of this section — as the bureau deems necessary or appropriate to carry out the purposes of this section.

The California and Nevada Credit Union Leagues ask that the bureau carefully consider the compliance burden associated with collecting the data and to conduct a robust cost-benefit analysis before drafting their rules.

When drafting the HMDA rules, the bureau used its discretionary authority to require additional data points not mandated by the DFA. While those data points are now being reconsidered by the bureau, the Leagues strongly urge the bureau, in drafting rules for Section 1071, to require collection of only the data points mandated by the statute and nothing more.

Symposium Details
CFPB Director Kathleen L. Kraninger will deliver remarks at the symposium, followed by two panel discussions.

The first panel will focus on the evolution in the small business lending marketplace. The second panel will include a discussion of issues surrounding implementation of Section 1071.

The symposium will be held at 9:30 a.m. Eastern on Nov. 6, 2019 in Washington, D.C. and will be live-streamed. A web link to view the live-stream video will be made available the day of the symposium on Nov. 6 and can be found at here.

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