The House Financial Services Committee has advanced a resolution nullifying the Consumer Financial Protection Bureau’s (CFPB) Section 1071 small-business data collection and reporting requirements.
U.S. Rep. Roger Williams (R-TX) introduced H.J.Res.66, which would provide for congressional disapproval of the CFPB’s 1071 small-business data collection and reporting rule and dictate that it has no force or effect.
“The CFPB’s rulemaking is a continued attack on Main Street America,” Williams, House Small Business Committee chairman and member of the House Financial Services Committee, said. “Small business owners are already facing increased borrowing costs and crushing inflation as the Federal Reserve has raised interest rates to a 22-year high. The 1071 rule will only make it harder for existing business owners and entrepreneurs to access the capital they need.”
Additionally, the Independent Community Bankers of America (ICBA) commended the Committee for advancing the resolution, which rebukes burdensome data collection and reporting requirements for small-business loans that would ultimately harm the women- and minority-owned small businesses the rule is designed to help.
“The Consumer Financial Protection Bureau’s data collection requirements would significantly degrade the ability of community banks to meet the needs of small businesses while requiring financial institutions to burden their customers with invasive questions and then publicly report the data they collect to the bureau,” ICBA President and CEO Rebeca Romero Rainey said. “We urge Congress to fully pass H.J.Res.66 to block this misguided rule’s harmful impact on privacy and its potential to restrict access to credit to the small businesses that drive the nation’s economy.”