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Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)
Plain English Summary
The Consumer Financial Protection Bureau (CFPB) has updated rules that affect how small businesses can access credit. These changes include a new definition of what qualifies as a small business, adjustments to the types of credit transactions covered, and how data is collected and reported. The goal is to make the rules simpler for lenders and improve the quality of the information collected. Insurance agents should stay informed about these changes as they may impact small business clients seeking credit.
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The Consumer Financial Protection Bureau (Bureau or CFPB) is revising certain provisions of Regulation B, subpart B, which implements changes to the Equal Credit Opportunity Act made by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Bureau is amending coverage of certain credit transactions and financial institutions; the small business definition; inclusion of certain data points and how others are collected; and the compliance date. The Bureau believes these changes will streamline the rule, reduce complexity for lenders, improve data quality, and advance the purposes of section 1071.