PROVIDING FOR CONGRESSIONAL DISAPPROVAL OF THE RULE SUBMITTED BY THE BUREAU OF CONSUMER FINANCIAL PROTECTION RELATING TO "SMALL BUSINESS LENDING UNDER THE EQUAL CREDIT OPPORTUNITY ACT (REGULATION...
Rashida Tlaib (Democrat, MI) \u2014 2023-12-1

. Madam , I thank our ranking member for yielding. prgtoken Madam , the resolution that they are attempting to use to overturn this rule is about small business lending. prgtoken We know that, but what is the problem? prgtoken We are now afraid of data? We don't want to collect data? This is even voluntary. prgtoken You are opposing a process that would help create more transparency, more information gathering, competitiveness, and a fair marketplace for lenders and small businesses. It is voluntary. prgtoken We are scared now? We are scared of voluntarily collecting data? prgtoken Section 1071 allows lenders to collect and report lending data, including voluntarily self-reported by businessowners. This rule does help small business, and I will give you some examples, particularly those owned by women, people of color. prgtoken We are even going to collect data, especially in my district, of veterans, many of them Black men and women, who have started businesses after they served our country. They are all lacking access to credit that they need to build up their businesses. prgtoken Study after study has documented that small business owners, especially the small business owners in my district, continue to face discriminatory practices by banks. prgtoken We already know for a fact that Black-owned business are less likely to obtain financing and are offered smaller loans. prgtoken Section 1071 will make it easier to eliminate such practices and enforce our fair lending laws--again, to enforce our fair lending laws. Maybe that is why. Maybe that is why the banks are crying about this voluntary process. They are scared. Why? prgtoken Had the CFPB Small Business Lending Rule been in place during the Paycheck Protection Program, Madam , the transparency required by this rule would likely have reduced the racial disparity in lending outcomes that we saw. prgtoken There is also a clear precedent for what such a rule can accomplish. These are real people--and folks can laugh. They can think that this is not real. These are people that are literally putting their whole life savings into a small business, and hoping and praying that they have the investment from the Federal Government. prgtoken When the Home Mortgage Disclosure Act established reporting processes for mortgage lenders that are similar to those in the CFPB rule, did you all know that lending to Black borrowers for conventional home purchases increased by 70 percent in 3 years? In 3 years we increased Black homeownership. prgtoken All Americans, not just some, deserve access and fairness, especially when we continue to bail out these banks for their continued failure and their discriminatory practices. prgtoken Section 1071 promotes transparency, competition, and fairness. Overturning this is a disservice to our small business owners everywhere. prgtoken I thank our ranking member and others that continue to advocate for this. This is the right thing to do. This is how