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Small LENDER Act
12/30/2022, 4:18 AM
Summary of Bill HR 6732
The main provisions of the Small LENDER Act include reducing regulatory burdens on small lenders by exempting them from certain reporting requirements and streamlining the examination process. This is intended to help small lenders better serve their customers and communities by allowing them to focus more on lending and less on compliance.
Additionally, the bill aims to promote financial inclusion by encouraging small lenders to provide access to credit for underserved populations, such as low-income individuals and small businesses. This is seen as a way to stimulate economic growth and job creation in these communities. Overall, the Small LENDER Act is designed to support small lenders in their efforts to provide affordable and accessible financial services to their customers, while also promoting economic development in underserved areas. It is hoped that this legislation will help level the playing field for small lenders and contribute to a more inclusive and vibrant financial system in the United States.
Congressional Summary of HR 6732
Small Lenders Exempt from New Data and Excessive Reporting Act or the Small LENDER Act
This bill exempts certain financial institutions and transactions from the Consumer Financial Protection Bureau (CFPB) reporting requirements with respect to data about small business credit applications.
Under the bill, the requirements apply only to financial institutions that originate at least 500 credit transactions to small businesses in each of the preceding two years. The bill further defines small businesses as those with annual revenue of $1 million or less.
Currently, the CFPB has proposed a rule that the requirements apply only to financial institutions that originate at least 25 annual credit transactions to small businesses in each of the preceding two years. The rule further defines small businesses as those with annual revenue of $5 million or less.
