Bill Details
View committees (1)
View cosponsors (16)
- Rep. Meuser, Daniel [R-Pennsylvania-9]
- Rep. Wagner, Ann [R-Missouri-2]
- Rep. Huizenga, Bill [R-Michigan-4]
- Rep. Timmons, William R. [R-South Carolina-4]
- Rep. Moore, Tim [R-North Carolina-14]
- Rep. Williams, Roger [R-Texas-25]
- Rep. Haridopolos, Mike [R-Florida-8]
- Rep. Nunn, Zachary [R-Iowa-3]
- Rep. Hinson, Ashley [R-Iowa-2]
- Rep. Mackenzie, Ryan [R-Pennsylvania-7]
- Rep. Womack, Steve [R-Arkansas-3]
- Rep. Kelly, Trent [R-Mississippi-1]
- Rep. Buchanan, Vern [R-Florida-16]
- Rep. Shreve, Jefferson [R-Indiana-6]
- Rep. Rose, John W. [R-Tennessee-6]
- Rep. Wilson, Joe [R-South Carolina-2]
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change the rules for collecting small business loan data under federal credit law. It gives banks and other lenders much more time before they must fully follow the new reporting rules, creates a short grace period where the government cannot enforce them, and exempts many smaller lenders from the requirements altogether. It also says lenders may give applicants a simple written notice explaining why the information is being collected, that the applicant does not have to provide it, and that refusing will not affect the credit decision. The bill also limits how lenders gather this information by saying they cannot use visual guesswork or other methods if the applicant did not provide the data directly.
- The Consumer Financial Protection Bureau could not require compliance with these small business lending data rules until June 1, 2031.
- For the 2 years after that date, the Bureau could not enforce the rules, giving lenders a temporary safe harbor.
- Small financial institutions would be exempt if they made fewer than 2,500 small business credit loans in each of the past 2 years, or if they have less than $10 billion in assets.
- The bill says the share of applicants who actually provide the information cannot be used to judge whether a lender is complying with the law. It also defines a “small business” as one with $1 million or less in yearly gross revenue.
Official Summaries
Small Lenders Exempt from New Data and Excessive Reporting Act or the Small LENDER Act
This bill modifies the requirements for financial institutions to report certain information about small business credit applications to the Consumer Financial Protection Bureau (CFPB) and extends the timeline for compliance with the CFPB rule with respect to such reporting (i.e., Section 1071 final rule). (For background about the CFPB rule and subsequent litigation see CRS Report R47788.)
Under the bill, the reporting requirements apply only to financial institutions that originate at least 500 credit transactions to small businesses in each of the preceding two years. The bill further defines small businesses as those with gross annual revenue of $1 million or less.
The rule currently establishes a phase-in period that ultimately requires institutions that originate over 100 credit transactions to small businesses to comply with the reporting requirements. The rule also defines small businesses as those with gross annual revenue of $5 million or less.
Further, beginning on the date the final CFPB rule was issued (May 31, 2023), the bill provides three years for applicable financial institutions to comply with the rule followed by a two-year safe harbor period during which such institutions are not subject to any penalties for failure to comply with the rule.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 941 Reported in House (RH)]
<DOC>
Union Calendar No. 610
119th CONGRESS
2d Session
H. R. 941
[Report No. 119-702]
To amend the Equal Credit Opportunity Act to provide for an effective
date and a temporary safe harbor for compliance with certain small
business lending data collection rules, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2025
Mr. Hill of Arkansas (for himself, Mr. Meuser, Mrs. Wagner, Mr.
Huizenga, Mr. Timmons, Mr. Moore of North Carolina, and Mr. Williams of
Texas) introduced the following bill; which was referred to the
Committee on Financial Services
June 18, 2026
Additional sponsors: Mr. Haridopolos, Mr. Nunn of Iowa, Mrs. Hinson,
Mr. Mackenzie, Mr. Womack, Mr. Kelly of Mississippi, Mr. Buchanan, Mr.
Shreve, Mr. Rose, and Mr. Wilson of South Carolina
June 18, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
February 4, 2025]
_______________________________________________________________________
A BILL
To amend the Equal Credit Opportunity Act to provide for an effective
date and a temporary safe harbor for compliance with certain small
business lending data collection rules, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Lenders Exempt from New Data
and Excessive Reporting Act'' or the ``Small LENDER Act''.
SEC. 2. SMALL BUSINESS LOAN DATA COLLECTION.
Section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c-
2) is amended--
(1) in subsection (c)--
(A) by striking ``Any applicant'' and inserting the
following:
``(1) In general.--Any applicant''; and
(B) by striking the period at the end and inserting
the following: ``, and the financial institution may,
when requesting such information, inform the applicant
in writing that--
``(A) the Bureau of Consumer Financial Protection
requires the financial institution to ask, collect, and
report such information to the Federal Government
annually pursuant to this section;
``(B) the applicant is not required to provide such
information; and
``(C) the applicant's response will not affect the
financial institution's evaluation of the request for
credit.
``(2) Model form.--The Director of the Bureau of Consumer
Financial Protection shall establish a model form to be used in
providing the information required to be provided to an
applicant under paragraph (1). Such form shall--
``(A) be in plain English; and
``(B) to the extent practicable, be no longer than
a single page.'';
(2) by striking subsection (d);
(3) by redesignating subsections (e), (f), (g), and (h) as
subsections (d), (e), (f), and (g), respectively; and
(4) in subsection (d), as so redesignated--
(A) in paragraph (2)--
(i) by striking subparagraphs (C), (G), and
(H);
(ii) by redesignating subparagraphs (D),
(E), and (F) as subparagraphs (C), (D), and
(E), respectively;
(iii) in subparagraph (D), as so
redesignated, by adding ``and'' at the end; and
(iv) in subparagraph (E), as so
redesignated, by striking the semicolon and
inserting a period;
(B) in paragraph (3), by striking ``paragraph
(1)(E)'' and inserting ``paragraph (1)(D)''; and
(C) by adding at the end the following:
``(5) Prohibition on information not reported by an
applicant.--A financial institution may not compile and
maintain information described under subsection (b) that was
determined by the financial institution using visual
observation or any other manner other than being provided by an
applicant.'';
(5) in subsection (f), as so redesignated, by adding at the
end the following:
``(4) Initial compliance date.--
``(A) In general.--The Bureau may not require a
financial institution to comply with this section, or
any rule issued under this section, until June 1, 2031.
``(B) Safe harbor.--The Bureau may not enforce
compliance with the requirements of this section during
the 2-year period beginning on the date described in
subparagraph (A).
``(5) Exemption for small financial institutions.--A
financial institution is exempt from the requirements of this
section if the financial institution--
``(A) in each of the 2 previous calendar years,
originated less than 2,500 credit transactions for
small businesses; or
``(B) has less than $10,000,000,000 in assets.
``(6) Treatment of response rate.--The percentage of
applicants providing a financial institution with the
information described under subsection (b) may not be used as a
factor in determining whether a financial institution is in
compliance with the requirements under this section.''; and
(6) in subsection (g), as so redesignated, by striking
paragraph (2) and inserting the following:
``(2) Small business.--The term `small business' means any
entity with gross annual revenues of $1,000,000 or less in the
most recently completed fiscal year.''.
Union Calendar No. 610
119th CONGRESS
2d Session
H. R. 941
[Report No. 119-702]
_______________________________________________________________________
A BILL
To amend the Equal Credit Opportunity Act to provide for an effective
date and a temporary safe harbor for compliance with certain small
business lending data collection rules, and for other purposes.
_______________________________________________________________________
June 18, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed