OFN recently submitted comments to the Consumer Financial Protection Bureau (CFPB) as part of the agency’s process to implement Section 1071 of the Dodd-Frank financial reform legislation. Section 1071, which amended the Equal Credit Opportunity Act, requires financial institutions to collect certain data regarding applications for credit for women-owned, minority-owned, and small businesses, and to report that data annually to the CFPB.
The implementation of Section 1071 will provide the first comprehensive dataset on the small business lending industry, allowing for analysis of trends as well as a greater understanding of how financial institutions provide credit to small businesses and the overall financial health of our nation’s small businesses, especially women- and minority-owned businesses.
OFN’s comments reinforced our support for this important data collection and highlighted the need to cover as many lenders and products as possible to have a broad understanding of the small business lending market. The letter also emphasized the importance of aligning Section 1071 with CDFI Fund reporting requirements to minimize the burden on CDFIs.
For more information on Section 1071 and the potential impact on CDFIs, contact OFN SVP of Public Policy Dafina Williams.