- 1The bill would define a small business as one with $1M in annual revenue, versus $5M.
- 2Covered institutions would need 500+ credit transactions a year, versus 100.
- 3The CFPB is likely to release an amended rule this year.
A bill introduced in the House of Representatives would make targeted changes to the CFPB's small business data collection rule through legislation, even as the agency itself reworks the rulebook.
The proposed changes
The bill, titled the "Small Lenders Exempt from New Data and Excessive Reporting Act," would make two changes:
- Define a small business as one with $1 million in annual revenue, rather than the $5 million used in the last iteration of the rules.
- Define covered financial institutions as those that do at least 500 credit transactions a year, rather than the 100-transaction threshold in the last iteration.
Background
The 888-page rulebook has undergone an internal reconfiguration by the CFPB. Controversy has followed small business lending data collection since the law requiring it passed in 2010. Sixteen years later, disagreement persists over what was meant to be collected, from whom, how, and what the agency can do with the data.
The CFPB is likely to release an amended version of the rules sometime this year.
Source reporting: deBanked.
