Bill > S2352

This bill amends the Equal Credit Opportunity Act to modify small business loan data collection requirements. The bill, known as the PROTECTED Act, introduces several key provisions for financial institutions when collecting demographic information from small business loan applicants. Specifically, financial institutions must now inform applicants in writing that: (1) the Bureau of Consumer Financial Protection requires the information collection, (2) the applicant's response will not affect their credit evaluation, and (3) providing the information is optional. The bill narrows the definition of which financial institutions must comply, excluding those with less than $10 billion in assets, Farm Credit System institutions, community development financial institutions, and equipment and vehicle lenders. It also prohibits financial institutions from compiling demographic information through visual observation or methods other than direct applicant reporting. Additionally, the bill requires the Bureau of Consumer Financial Protection to issue rules before modifying data collection practices and provides a two-year safe harbor period for enforcement. A small business is defined as an entity with gross annual revenues of no more than $1 million in the preceding fiscal year, and only financial institutions that originated at least 2,500 credit transactions for small businesses in the past two years are subject to these requirements.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2352/all-info