Small LENDER Act
Bill: S.4004 | Sponsor: Sen. Boozman, John (R-AR)
Policy area: Commerce

Summary:
Small Lenders Exempt from New Data and Excessive Reporting Act or the Small LENDER Act
This bill exempts certain financial institutions and transactions from the Consumer Financial Protection Bureau (CFPB) reporting requirements with respect to data about small business credit applications.
Under the bill, the requirements apply only to financial institutions that originate at least 500 credit transactions to small businesses in each of the preceding two years. The bill further defines small businesses as those with annual revenue of $1 million or less.
Currently, the CFPB has proposed a rule that the requirements apply only to financial institutions that originate at least 25 annual credit transactions to small businesses in each of the preceding two years. The rule further defines small businesses as those with annual revenue of $5 million or less.

To alter 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 financial institutions not less than 3 years to 
                comply with the rule or guidance.
                    ``(B) Safe harbor.--With respect to any rules or 
                guidance issued under this subsection on or after the 
                date of enactment of this paragraph, upon expiration of 
                the 3-year period described in subparagraph (A), the 
                Bureau shall provide a 2-year safe harbor to all 
                financial institutions during which the financial 
                institutions are required to comply with the rule or 
                guidance but not subject to any penalties.''; and
            (2) in subsection (h), by striking paragraphs (1) and (2) 
        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 preceding calendar years, 
                originated not less than 500 credit transactions for 
                small businesses.
            ``(2) Small business.--The term `small business' means any 
        entity with gross annual revenues of $1,000,000 or less in the 
        most recently completed fiscal year.''.
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