March 30, 2023–WASHINGTON, D.C.–The Consumer Financial Protection Bureau (CFPB) recently issued a final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 mandates that specific banks and financial institutions make public certain racial, demographic, and ownership data for small businesses applying for and receiving capital. The rule will apply to a diverse array of lenders, including non-bank institutions and technology firms. For a factsheet on the final rule, click here. For an executive summary, click here. For information about enforcement and implementation, see here.
President and CEO, Connie E. Evans, said the following about the final rule: “The Association for Enterprise Opportunity commends the CFPB for the publication of its final rule to bring greater transparency into small business lending data. This long-awaited rule will work towards dismantling the systemic barriers faced by our small and microbusiness community by bringing never-before-seen data on small business barriers to capital access to the forefront. With new insights on barriers faced by small businesses seeking capital, policymakers will be able to make greater and well-informed decisions on improvements to small business lending programs and processes. We applaud the CFPB’s leadership on this issue and look forward to the release of this data in the years ahead.”
About Association for Enterprise Opportunity (AEO): AEO is the leading voice of innovation for microbusiness and microfinance. We create economic opportunity for underserved entrepreneurs throughout the United States. We engineer transformational change through Research, Incubation, Convening & Advocacy to foster a robust and inclusive marketplace. For more information, visit aeoworks.org.
Contact: Corey Briscoe, [email protected]