PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Statement of Support for the CRA Resolution to Nullify CFPB’s Small-Business Unfriendly Lending Rule

By at 30 November, 2023, 3:25 pm

STATEMENT OF SUPPORT FOR S.J. RES. 32

For Immediate Release

Washington, D.C. – The following statement can be attributed to Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan on S. J. Res. 32, the Congressional Review Act (CRA) resolution of disapproval for the Small Business Lending Under the Equal Credit Opportunity Act (Regulation B) rule, which was finalized by the Consumer Financial Protection Bureau (CFPB). The U.S. House is expected to vote on the resolution on December 1.

“If the goals of CFPB regulators are to make capital and credit scarce and expensive for small businesses, bury small businesses and financial institutions with costly and time-consuming paperwork, expose small-business borrowers and lenders to increased litigation and privacy risks, drive more small banks out of business, and limit competition in the financial lending space, then the bureau will have accomplished its work under this new lending rule.

“CFPB regulators have taken a modest directive to collect 13 data points under Dodd-Frank and turned that into a 900-page regulatory monstrosity. The impact on small business borrowers and lenders will be disastrous. Moreover, the overall competitive effect is not a good one for small businesses. The massive regulatory costs and risks associated with the CFPB rule will limit lending choices, as it will drive some existing players out of business and limit new entrants into this sector.

“All members of Congress who express concern about the ability of startups and small business owners to access growth or operating capital should vote to overturn the CFPB rule, and that means voting in favor of S.J. Res 32. The outcome of CFPB’s new rule will not produce equal credit opportunity and access, but far less capital and credit for all small businesses. Therefore, Congress must nullify CFPB’s lending rule.”

CONTACT:

KAREN KERRIGAN, kkerrigan@sbecouncil.org

RAYMOND KEATING, rkeating@SBECouncil.org

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For nearly 30 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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