AFSA Meets with CFPB on Small-Business Lending Rulemaking

Today, AFSA staff meet with the Consumer Financial Protection Bureau to discuss the Bureau’s small-business lending rulemaking, which the Bureau is required by pursue by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection (Dodd-Frank) Act. This section requires financial institutions to collect and report information concerning credit applications made by women-owned, minority-owned, and small businesses. The Bureau is currently focused on the small business lending market, as a substantial percentage of women-owned and minority-owned business would be covered by most definitions of “small business.”

At the meeting earlier this week, Bureau staff was looking for feedback from AFSA on how the Bureau could define small business, what data points lenders should be required to collect and report, what credit product types are offered to small businesses, and what the privacy-related concerns are for collecting and reporting data. The Bureau was also interested in the commercial lending market in general, as well as specifically how applications are processed in the indirect auto lending market.

AFSA is working with members on a response to questions raised in the meeting and the questions posed in the Bureau’s request for information, which was published in the Federal Register in May. In response to request from several organizations, including AFSA, the due date for comments has been pushed back until September.