The new small business lending rule from the federal consumer financial protection agency has prompted the issuance of a small entity compliance guide by the agency, it announced Monday.
The compliance guide was issued Friday (May 12), the agency said. It provides a detailed summary of the final rule’s requirements, but does not discuss other laws, regulations, or regulatory guidance that may apply, the agency said. It also doesn’t include any rules, bulletins, guidance, or other interpretations issued or released after the date on the guide’s cover page, CFPB said.
The CFPB finalized the small business lending reporting rule at the end of March. Overall, the rule was in development for 13 years (since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) of 2010). The rule requires lenders to collect and report information about the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit.
It is aimed at increasing transparency in small business lending, among other things. According to the agency, it will provide data on small business lending that “will give investors and lenders more insights to identify new opportunities that support economic growth, help policymakers measure the effectiveness of any government programs, and provide a data-driven approach to detect potential discrimination.”
The compliance guide covers such areas as what institutions, businesses and transactions are covered by the rule, reportable data points, collection and compilation of data, reporting data to the bureau, availability and disclosure of data, and effective and compliance dates.
Small Business Lending Rule: Small Entity Compliance Guide
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