CFPB Finalizes Rule on Data Collection on Small Business Lending

The Consumer Financial Protection Bureau (CFPB) has finalized a rule mandated by Congress that will increase and improve the data available on small business lending in the country. According to this new rule—which will work in tandem with the Community Reinvestment Act—lenders will be required to collect and report the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit.

National ACE is pleased to see that data collection continues to be a priority across the federal government. Though small business owners and entrepreneurs employ nearly half of all private sector workers and account for the majority of new job creation, there is little data on their access to capital and credit. The lack of data is even more apparent when it comes to diverse small business owners, such as those in the Asian American and Pacific Islander (AAPI) communities.

The collection of meaningful data on small business communities, and particularly AAPI communities, has always been a policy priority for National ACE, as written in our 2023 Policy Agenda. We look forward to seeing how this new rule will increase transparency in small business lending, address uneven lending practices, and halt discriminatory patterns. With this new data, there is great potential for a deeper understanding of where gaps in credit exist in our country, and how to best uplift the most underserved segments of our country.