Small Business Credit Protection Act of 2021

Small Business Credit Protection Act of 2021

This bill establishes requirements related to breaches of data belonging to small businesses.

Specifically, a consumer reporting agency must promptly report any breach of nonpublic small business data. In the event of a breach, a consumer reporting agency may not charge a small business for a credit report. Additionally, the Government Accountability Office must report on the economic harm to small businesses resulting from data breaches at consumer reporting agencies.

Bill 117 hr 3854, also known as the Small Business Credit Protection Act of 2021, aims to provide small businesses with greater protection and transparency when it comes to their credit reports. The bill seeks to amend the Fair Credit Reporting Act to require credit reporting agencies to provide free credit reports to small businesses on an annual basis.

Additionally, the bill includes provisions that would allow small businesses to dispute errors on their credit reports and require credit reporting agencies to investigate and correct any inaccuracies in a timely manner. This would help small businesses maintain accurate credit information, which is crucial for obtaining financing and conducting business operations.

Furthermore, the Small Business Credit Protection Act of 2021 would also require credit reporting agencies to establish a process for small businesses to place a security freeze on their credit reports, similar to the protections already available to consumers. This would help prevent identity theft and fraud, which can have devastating consequences for small businesses. Overall, this bill aims to level the playing field for small businesses when it comes to accessing and managing their credit information. By providing greater transparency, protection, and control over their credit reports, small businesses can make more informed financial decisions and better protect themselves from potential risks.