Bill > HR941

This bill amends the Equal Credit Opportunity Act to provide relief for financial institutions regarding new small business lending data collection rules. Specifically, the bill gives financial institutions a 3-year period to initially comply with the new rule issued by the Bureau of Consumer Financial Protection (the Bureau) on May 31, 2023, followed by an additional 2-year safe harbor period during which institutions must attempt to comply but will not face penalties for non-compliance. The bill defines a financial institution as an entity engaged in financial activities that has originated at least 500 credit transactions for small businesses in each of the previous two calendar years. It also defines a small business as an entity with gross annual revenues of $1,000,000 or less in its most recently completed fiscal year. The legislation, known as the "Small LENDER Act," aims to provide financial institutions with a more gradual and flexible approach to implementing new data collection requirements for small business lending, giving them time to adapt to the new regulatory framework without immediate punitive consequences.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/941/all-info