On April 30, the Consumer Financial Protection Bureau issued a revised final rule implementing Section 1071 of Dodd-Frank, aimed at addressing discrimination in small business lending. The original rule, finalized during the Biden administration, raised significant concerns among lenders regarding operational complexity and the potential for unintended consequences, including reduced access to credit for small businesses. Industry groups challenged the rule in court, delaying its implementation into the new administration, which subsequently moved to revise it.<\/p>\n\n\n\n
The new rule will likely improve the small business lending environment for independent dealers turning to traditional banks and credit unions to meet their floor planning needs and other operational lines of credit. <\/p>\n\n\n\n
The updated rule substantially narrows the scope of the original measure by reducing the number of institutions required to collect and report demographic data, such as race and gender, from small business borrowers. Under the revised threshold, only institutions that originate at least 1,000 small business loans in each of the two preceding years are subject to the rule, an increase from the previous threshold of 100 loans. The rule also eliminates requirements to collect certain personal details, including gender identity and other aspects of business ownership status.<\/p>\n","protected":false},"excerpt":{"rendered":"On April 30, the Consumer Financial Protection Bureau issued a revised final rule implementing Section 1071 of Dodd-Frank,…\n","protected":false},"author":1,"featured_media":2685,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[10,9,3],"tags":[],"class_list":{"0":"post-7181","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-advocacy","8":"category-finance-insurance","9":"category-industry","10":"cs-entry","11":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/7181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/comments?post=7181"}],"version-history":[{"count":1,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/7181\/revisions"}],"predecessor-version":[{"id":7182,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/7181\/revisions\/7182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media\/2685"}],"wp:attachment":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media?parent=7181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/categories?post=7181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/tags?post=7181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}