CBAI Urges Exemption from CFPB Small Business Data Collection Rule

In a September 12, 2017 comment letter to the Consumer Financial Protection Bureau, the Community Bankers Association of Illinois (CBAI) urged an exemption for community banks from the upcoming small business data collection rule. CBAI acknowledged that Section 1071 of the Dodd-Frank Act requires financial institutions to report information concerning credit applications made by women-owned, minority-owned, and small businesses in part to facilitate the enforcement of fair lending laws, and that the Bureau is currently focused on outreach to further its understanding of the small business lending market.

Community banks currently control less than 20% of the nation’s deposits yet make approximately 50% of the small business loans. This large percentage of lending activity clearly indicates a high level of satisfaction by small businesses with community banks whose hallmark is treating their customers and communities fairly and with respect. This exemplary behavior by community banks in small business lending clearly requires that the Bureau focus its attention on the bad actors and the wrongdoers – not community banks.

CBAI called on the Bureau to use its authority under the Dodd-Frank Act to exempt any class of entity from its rulemaking. Community banks are deserving of broad exemptions that the Bureau is able to grant to them under the law and CBAI urged the Bureau to exempt all community banks under the forthcoming small business data collection rule. Read Comment Letter.