On Monday, the Texas federal district court hearing the lawsuit challenging the validity of the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act (Rule) issued an order that preliminarily enjoins the CFPB from implementing and enforcing the Rule “pending the Supreme Court’s reversal of [Community Financial Services Association of America Ltd.… Continue Reading
small business
Texas federal district court issues limited preliminary injunction enjoining CFPB from implementing and enforcing small business lending rule
The Texas federal district court hearing the lawsuit challenging the validity of the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act (Rule) has issued an order that preliminarily enjoins the CFPB from implementing and enforcing the Rule “pending the Supreme Court’s reversal of [Community Financial Services Association of America Ltd.… Continue Reading
CFPB publishes FAQs on small business lending rule
Last week, the CFPB added a set of Frequently Asked Questions to the compliance resources on its website for its small business lending rule implementing Dodd-Frank Section 1071.
The CFPB also published a slide deck for a webcast it held titled “Determining institutional coverage pursuant to the small business lending rule.” … Continue Reading
CFPB files opposition to preliminary injunction motion in lawsuit challenging Section 1071 final rule
The CFPB has filed its opposition to the motion seeking a preliminary injunction filed by the plaintiffs in the lawsuit challenging the validity of the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act (Rule). The plaintiffs in the amended complaint are the Texas Bankers Association (TBA), the American Bankers Association (ABA), and Rio Bank, McAllen, Texas.… Continue Reading
CRA resolutions introduced to override CFPB Section 1071 small business lending rule
Two joint resolutions under the Congressional Review Act (CRA) to override the CFPB’s final Section 1071 small business lending rule have been introduced by Republican members in the House. The resolutions are H.J. Res. 50 introduced on April 3, 2023 and H.J. Res. 66 introduced on May 31, 2023. (Since the two resolutions and their sponsors are identical, except that H.J.… Continue Reading
This week’s podcast episode: The Consumer Financial Protection Bureau’s final Section 1071 rule on small business data collection: what you need to know, Part II, with special guest David Skanderson, Vice President, Charles River Associates
By Barbara S. Mishkin on
At the end of March 2023, the CFPB issued its long-awaited final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses. … Continue Reading
CFPB speaks to ECOA and small business lending rule coverage of franchise financing
By John L. Culhane, Jr. on
The CFPB has published a document on its website that “communicates the extent to which the Equal Credit Opportunity Act (ECOA) and its implementing Regulation B apply with respect to franchises seeking credit to finance their businesses.” The document also addresses the application of the CFPB’s Section 1071 rule on small business lending to franchise financing.… Continue Reading
This week’s podcast episode: The Consumer Financial Protection Bureau’s final Section 1071 rule on small business data collection: what you need to know, Part I
By Barbara S. Mishkin on
At the end of March 2023, the CFPB issued its long-awaited final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses. … Continue Reading
CFPB final Section 1071 rule on small business data collection includes important changes from proposal; Ballard Spahr to hold webinar on April 17
On March 30, the Consumer Financial Protection Bureau issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses. … Continue Reading
Small Business Administration to expand 7(a) program to fintechs and alternative lenders
By John Sadler & Justin Kerner on
The Biden Administration recently announced a slate of new public and private sector initiatives aimed at advancing racial equity by delivering “capital and resources to underserved small businesses and the community lenders who serve them.” Among these initiatives was a proposed rule change for the Small Business Administration (SBA) that would increase the number of nonbanks, including Fintechs, eligible to offer SBA 7(a) loans. … Continue Reading