Small LENDER Act

Subjects: Commerce


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1159 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1159

 To amend the Equal Credit Opportunity Act to modify the requirements 
  associated with small business loan data collection, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2023

   Mr. Boozman (for himself, Mr. Daines, Ms. Lummis, Mr. Cramer, Mr. 
  Grassley, and Mr. Kennedy) introduced the following bill; which was 
read twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Equal Credit Opportunity Act to modify the requirements 
  associated with small business loan data collection, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Lenders Exempt from New Data 
and Excessive Reporting Act'' or the ``Small LENDER Act''.

SEC. 2. SMALL BUSINESS LOAN DATA COLLECTION.

    Section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c-
2) is amended--
            (1) in subsection (g), by adding at the end the following:
            ``(4) Compliance.--
                    ``(A) In general.--With respect to any rules or 
                guidance issued under this subsection on or after the 
                date of enactment of this paragraph, the Bureau shall 
                provide a financial institution a 3-year period to 
                comply with that rule or guidance, regardless of the 
                date on which that financial institution began the 
                operations of the financial institution.
                    ``(B) Safe harbor.--With respect to any rules or 
                guidance issued under this subsection on or after the 
                date of enactment of this paragraph, beginning on the 
                date after the last day of the 3-year period described 
                in subparagraph (A), the Bureau shall provide a 2-year 
                safe harbor to financial institutions during which each 
                such financial institution shall be required to comply 
                with the rule or guidance but shall not be subject to 
                any penalties for failure to comply.''; and
            (2) in subsection (h)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Financial institution.--The term `financial 
        institution' means any partnership, company, corporation, 
        association (incorporated or unincorporated), trust, estate, 
        cooperative organization, or other entity that--
                    ``(A) engages in any financial activity; and
                    ``(B) in each of the 2 calendar years preceding the 
                first day of the safe harbor period described in 
                subsection (g)(4)(B), originated not less than 500 
                credit transactions for small businesses.''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Small business.--The term `small business' means any 
        entity with gross annual revenues of not more than $1,000,000 
        in the most recently completed fiscal year preceding the first 
        day of the safe harbor period described in subsection 
        (g)(4)(B).''.
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