Rep. Williams Introduces Resolution Disapproving Implementation of Final CFPB 1071 Rule

WASHINGTON, D.C. - Congressman Roger Williams (TX-25), along with Rep. Andy Barr (KY-06) and Rep. Andy Ogles (TN-05), introduced a resolution of disapproval, under the authority of the Congressional Review Act, to halt implementation of the CFPBs final 1071 rule known as the Small Business Lending Data Collection rule.

The Consumer Financial Protection Bureau’s (CFPB) new rule is a continued attack on Main Street America,” said Congressman Williams. “Each day, small businesses struggle with rising costs, increasing interest rates, and ongoing labor shortages, and this new rule only builds on those issues. We cannot allow the CFPB to continue to add burdensome requirements without any consideration of their impact on small businesses and lenders. This resolution furthers my commitment to protect Main Street America from costly over-regulation by unelected bureaucrats.”

“I am incredibly grateful for Congressman Roger Williams’ leadership in introducing a resolution disapproving the CFPB’s small business data collection regulation under the Congressional Review Act,” said Representative Barr.  “While Section 1071 of the Dodd Frank Act directed the Bureau to adopt a regulation governing the collection of small business lending data, the rule as finalized by Director Chopra will unnecessarily impose massive new burdens on financial institutions which will increase the cost and decrease the availability of credit for millions of Main Street borrowers and entrepreneurs. I look forward to working with Congressman Williams who, as a small business owner himself, understands the need to block this regulatory overreach, which would, if enacted, force many community banks and credit unions to exit small business lending altogether.”

“The Consumer Financial Protection Bureau’s (CFPB) rule to require financial institutions to collect and report data about small businesses will be detrimental to their success. This would not only increase the cost to small businesses but also create a broad, burdensome information collection process,” said Congressman Andy Ogles. “The CFPB should let financial institutions do their job instead of encroaching on their potential to prosper.”

Background:

This resolution is in response to the Biden Administration's Consumer Financial Protection Bureau's (CFPB) implementation of Dodd-Frank Section 1071, which attempts to gather information on small business loan applicants. As proposed, this rule would be very expensive for banks to implement, will reduce access to capital for small business, and stifle economic recovery after the pandemic. This resolution will ensure the rule will never go into effect.  

Read the resolution here.

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Congressman Roger Williams is the Chairman of the House Small Business Committee and member of the House Financial Services Committee. He proudly represents the 25th Congressional District of Texas.