FTA Submits Comment Letter to the CFPB on Small Business Lending Rule
Washington, D.C. — The Financial Technology Association (FTA) submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) regarding its proposed amendments to Regulation B implementing Section 1071 of the Dodd-Frank Act, which governs data collection on small business lending.
In the letter, FTA urges the Bureau to focus on high-quality, privacy-protected data collection that enhances understanding of small business credit needs without imposing undue operational complexity or costs on lenders. Key recommendations include:
Protecting sensitive borrower and lender data by limiting public disclosure to high-level aggregated categories to prevent re-identification and protect proprietary business information.
Removing non-statutory data fields to reduce burden, prevent misleading inferences, and protect borrower privacy.
Extending the compliance date to January 1, 2028, to ensure secure and consistent implementation.
Raising coverage thresholds to avoid sweeping in small or emerging lenders without the operational capacity for compliance.
Updating ownership definitions to “50 percent or more” to accurately reflect real-world partnerships and improve data quality.
FTA highlighted how fintech companies play a critical role in expanding access to capital for small businesses across the country and appreciates the Bureau’s commitment to ensuring that implementation of Section 1071 advances transparency and fairness while preserving innovation and credit availability.”
FTA looks forward to continued engagement with the CFPB and policymakers to ensure that the final rule promotes transparency and inclusion in small business lending without stifling innovation or limiting financing options for America’s entrepreneurs.
The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.
FTA Submits Comment Letter to the CFPB on Small Business Lending Rule
Washington, D.C. — The Financial Technology Association (FTA) submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) regarding its proposed amendments to Regulation B implementing Section 1071 of the Dodd-Frank Act, which governs data collection on small business lending.
In the letter, FTA urges the Bureau to focus on high-quality, privacy-protected data collection that enhances understanding of small business credit needs without imposing undue operational complexity or costs on lenders. Key recommendations include:
FTA highlighted how fintech companies play a critical role in expanding access to capital for small businesses across the country and appreciates the Bureau’s commitment to ensuring that implementation of Section 1071 advances transparency and fairness while preserving innovation and credit availability.”
FTA looks forward to continued engagement with the CFPB and policymakers to ensure that the final rule promotes transparency and inclusion in small business lending without stifling innovation or limiting financing options for America’s entrepreneurs.
Read the full comment letter here.
About Us
The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.