Small Business Credit Protection Act of 2023

Small Business Credit Protection Act of 2023

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 118 s 1371, also known as the Small Business Credit Protection Act of 2023, aims to provide additional protections for small businesses in the United States. The bill focuses on improving access to credit for small businesses and ensuring that they are not unfairly penalized for factors beyond their control.

One key provision of the bill is the requirement for credit reporting agencies to provide free credit reports to small businesses on an annual basis. This will allow small business owners to monitor their credit and address any errors or issues that may arise. Additionally, the bill includes measures to prevent credit reporting agencies from including certain types of negative information, such as late payments due to natural disasters or emergencies, in a small business's credit report.

The Small Business Credit Protection Act of 2023 also includes provisions to help small businesses build and maintain good credit. This includes requiring credit reporting agencies to provide resources and guidance to small businesses on how to improve their credit scores and access to credit. The bill also encourages lenders to consider alternative data sources, such as payment history for rent or utilities, when evaluating a small business's creditworthiness. Overall, the Small Business Credit Protection Act of 2023 aims to level the playing field for small businesses when it comes to accessing credit and ensuring that they are treated fairly by credit reporting agencies. By providing free credit reports, limiting the inclusion of certain negative information, and promoting the use of alternative data sources, this bill seeks to empower small businesses and help them thrive in the competitive marketplace.