After the Consumer Financial Protection Bureau issued a new rule delaying the implementation of Section 1071 small business loan transparency rules finalized in 2023, the National Community Reinvestment Coalition (NCRC) issued the following statement:
“Everyone agrees that small business owners and entrepreneurs deserve to be evaluated on their individual merit, free from presumptions, inadvertent bias or outright discrimination,” said Jesse Van Tol, President and CEO of NCRC. “The Section 1071 rule finalized in 2023 does just that by gathering data we need to make sure every small business gets a fair shake.
“Today’s rule delays implementation by at least another year, adding up to 16 years since the underlying statute was passed by Congress in 2010. Every year of delay means more small businesses are left without the transparency they deserve and the ability to hold lenders accountable for fair lending and access to credit.
“I also hope this latest delay is not another tactic to buy time to rewrite the rules in the industry’s favor. Every year of delay keeps us in the dark about who gets credit and who is shut out.”
