Republicans on Capitol Hill are seeking to repeal a section of the Dodd-Frank Act that requires financial institutions to report information contained in loan applications submitted by women-owned, minority-owned and LGBTQI+-owned small businesses.

“My bill seeks to eliminate costly regulatory burdens on financial institutions, ensuring greater access to credit for small businesses,” House Small Business Committee Chairman Rep. Roger Williams, R-Texas, the primary sponsor of the House legislation, said, as he introduced H.R.976. The compliance dates for the rule, which vary based on small business lending volume, are July 18, 2025, January 16, 2026, and October 18, 2026.

The House bill currently has 29 co-sponsors; Sen. John Kennedy, R-La., is expected to introduce the Senate version of the bill.

In March, 2023, the CFPB finalized the small business reporting rule, informally known as the “Section 1071 Rule.” It refers to the Section of Dodd-Frank that creates the reporting requirement.

Financial institutions that originated at least 100 covered small business loans in each of the two preceding calendar years are subject to the rule.

Using the Congressional Review Act during the last Congress, the House and Senate approved resolutions that would have nullified the rule. That resolution required a simple majority in each house in order to be approved. The resolution was approved, but then-President Joe Biden vetoed that resolution. Under rules governing the CRA, opponents of the Section 1071 rule cannot use the CRA again to try to nullify the rule.

As a result, while the House could pass the legislation by a simple majority, depending on Senate support, it could take 60 votes to break a filibuster and pass the legislation there. As we reported previously, the rule is being challenged in lawsuits.