1071 Repeal to Protect Small Business Lending Act
The 1071 Repeal to Protect Small Business Lending Act would eliminate the small business loan data collection requirements that are part of the Equal Credit Opportunity Act (ECOA) and remove related provisions added by the Dodd-Frank Act (Section 1071). In short, the bill repeals Section 704B of ECOA, which governs data collection and reporting on small business lending, and makes conforming amendments to both ECOA and the Dodd-Frank statute to remove references to Section 1071. Proponents argue this reduces regulatory costs for financial institutions (especially smaller banks and credit unions) and could improve access to credit for small businesses. Critics may note that removing data collection could hinder monitoring for lending discrimination and reduce transparency around who gets small business credit.
Key Points
- 1Repeal of Section 704B: Eliminates the small business loan data collection and reporting requirements under ECOA.
- 2Dodd-Frank conformity: Strikes the Dodd-Frank section 1071 from the Act’s table of contents and repeals the section itself.
- 3ECOA conformity: Removes references to Section 704B from ECOA’s table of contents and adjusts language in Section 701(b) to remove the now-defunct provision.
- 4Rationale: The findings emphasize reducing regulatory burdens and potentially expanding access to credit for small businesses by lowering compliance costs for lenders.
- 5Data and oversight implications: The repeal would mean regulators and researchers would have less data to assess fair lending and to monitor disparities in small business lending.