A Congressional Review Act disapproving the CFPB 1071 rule is an NFIB Key Vote
Small businesses continue to oppose onerous reporting burdens. The Consumer Financial Protection Bureau (CFPB) 1071 Small Business Lending Rule, commonly referred to as the CFPB 1071 rule, would add extra paperwork and small business lending complications. On October 18, NFIB announced that it will consider S.J. Res. 32, the Congressional Review Act resolution of disapproval of the CFPB 1071 rule as an NFIB Key Vote for the 118th Congress. NFIB sent a letter to members of the United States Senate supporting the legislation.
“The CFPB 1071 rule would create onerous reporting requirements for both small business owners and the small financial institutions that lend to small businesses,” said Vice President of Federal Government Relations Kevin Kuhlman. “Small businesses are already inundated with federal paperwork when opening and running a business and applying for loans. They do not have the resources or staff to handle additional paperwork that this rule will require and neither do the small financial institutions they overwhelmingly use. This rule would not only have a negative impact on credit unions and small banks nationwide but also has the potential to limit small businesses’ access to credit.”
According to NFIB’s latest banking survey, 67% of small businesses use a small or regional financial institution for their credit needs with an additional 17% using a medium-sized institution.
This rule requires small businesses to file extra paperwork, including demographic information, when applying for a loan. That demographic paperwork information must be provided to CFPB, which could add new demographic requirements to small business lending, potentially threatening small business relationship banking and access to credit. Because small businesses generally use smaller community banks for their lending needs, this paperwork requirement is particularly burdensome for small banks.
S.J. Res. 32 would repeal the CFPB’s 1071 rule. S.J. Res. 32 passed the U.S. Senate 53-45 with every Senate Republican supporting the CRA, joined by Senators Sinema (I-AZ), Manchin (D-WV), Tester (D-MT), Hickenlooper (D-CO), and King (I-ME).
NFIB filed comments opposing the reporting burdens of the CFPB 1071 Rule in 2017 and urging Congress to repeal the rule. This is NFIB’s second Key Vote of the 118th Congress in the U.S. Senate.
NFIB has a proven track record of getting results on the issues that matter most to small business owners by challenging existing laws and regulations and speaking out on introduced legislation that would impact small business.
Voting on NFIB’s current Federal Issues Ballot – ballot #583 – remains open, and our member votes are critical in guiding our advocacy efforts. NFIB members can cast their votes by logging into their account at NFIB.com/votemyballot.