Credit Unions Support Bill to Repeal Small Business Loan Data Collection Rule

The U.S. Capitol

Congressman Roger Williams (R-Texas), chair of the House Small Business Committee, has introduced legislation to repeal Section 1071 of the Dodd-Frank Act, a rule requiring financial institutions to collect and report data on small business loan applications. Credit unions and other financial institutions have argued the rule imposes excessive compliance burdens with little benefit, ultimately restricting access to credit for small businesses.

Section 1071 mandates the collection of demographic and financial data on applications from women-owned, minority-owned and small businesses. Supporters of the repeal have argued that these reporting requirements create significant costs for lenders, particularly credit unions and community banks, without meaningfully improving lending fairness.