U.S. Reps. Roger Williams (R-TX), Andy Barr (R-KY), and Andy Ogles (R-TN) introduced a resolution of disapproval to halt the implementation of the Consumer Financial Protection Bureau’s (CFPB’s) Small Business Lending rule.
The rule would require 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. This resolution of disapproval would ensure that the rule will never go into effect.
“Each day, small businesses struggle with rising costs, increasing interest rates, and ongoing labor shortages, and this new rule only builds on those issues. We cannot allow the CFPB to continue to add burdensome requirements without any consideration of their impact on small businesses and lenders. This resolution furthers my commitment to protect Main Street America from costly over-regulation by unelected bureaucrats,” Williams said.
Williams and his fellow sponsors said the rule would be very expensive for banks to implement and reduce access to capital for small businesses.
“While Section 1071 of the Dodd Frank Act directed the Bureau to adopt a regulation governing the collection of small business lending data, the rule, as finalized by Director Chopra, will unnecessarily impose massive new burdens on financial institutions, which will increase the cost and decrease the availability of credit for millions of Main Street borrowers and entrepreneurs,” Barr said.