1071 Repeal to Protect Small Business Lending Act

# Summary of S. 557: 1071 Repeal to Protect Small Business Lending Act **What the Bill Would Do:** This bill would eliminate a federal requirement that banks and other financial institutions collect and report detailed data about loan applications from women-owned, minority-owned, and small businesses. Currently, lenders must track information such as how many applications they receive, which ones are approved or denied, loan amounts, and applicant demographics (including race, ethnicity, and sex), then report this data to the Consumer Financial Protection Bureau. **Who It Affects and Key Provisions:** The bill primarily affects banks, credit unions, and other lenders, which would no longer need to gather and submit this demographic and lending data.

It could impact small business owners, particularly women and minorities, who might lose visibility into potential lending disparities. Supporters argue the reporting requirement creates unnecessary paperwork burdens on lenders, while opponents contend that the data helps identify discrimination in lending practices and ensures fair access to credit. **Current Status:** The bill is currently in committee and has not yet been voted on by the full Senate.