Small LENDER Act

Bill: 118-s-1159
Sponsor: full_name: Sen. Boozman, John [R-AR]
Introduced: 2023-03-30
Policy area: Commerce
Latest action: action_date: 2023-03-30
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-03-30
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 118th CONGRESS 1st Session S. 1159 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.

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 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). .