Bill 119 HR 976, also known as the "Small Business Lending Data Collection Relief Act of 2021," aims to repeal the small business loan data collection requirements that are currently mandated under the Equal Credit Opportunity Act.
The Equal Credit Opportunity Act, passed in 1974, requires financial institutions to collect and report data on small business loans to the Consumer Financial Protection Bureau (CFPB). This data includes information on the race, sex, and ethnicity of the loan applicants, as well as the size and purpose of the loan.
Proponents of Bill 119 HR 976 argue that these data collection requirements place an unnecessary burden on small businesses and financial institutions, leading to increased compliance costs and paperwork. They believe that repealing these requirements will streamline the lending process and allow small businesses to access credit more easily.
Opponents of the bill, however, argue that collecting and reporting this data is crucial for identifying and addressing disparities in small business lending. They believe that repealing these requirements could lead to increased discrimination and a lack of transparency in the lending process.
Overall, Bill 119 HR 976 is a contentious piece of legislation that raises important questions about the balance between regulatory burden and the need for data collection to ensure fair lending practices. It will be important for lawmakers to carefully consider the potential impacts of repealing these data collection requirements before making a decision on the bill.