Small LENDER Act

Bill: 117-s-4004
Sponsor: full_name: Sen. Boozman, John [R-AR]
Introduced: 2022-04-05
Policy area: Commerce
Latest action: action_date: 2022-04-05
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-04-05
action_desc: Introduced in Senate
text: <p><b>Small Lenders Exempt from New Data and Excessive Reporting Act or the Small LENDER Act</b></p> <p>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.</p> <p>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.</p> <p>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.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4004 IN THE SENATE OF THE UNITED STATES April 5, 2022 Mr. Boozman (for himself, Mr. Cramer , Ms. Lummis , and Mr. Tillis ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To alter requirements associated with small business loan data collection, and for other purposes.

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 . 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. .