SBA office backs 1071 comment extension

Nov. 24, 2021

The SBA Office of Advocacy expressed support for ICBA and state banking associations’ request that the Consumer Financial Protection Bureau extend the comment deadline on its proposal to implement Dodd-Frank Section 1071 collection and reporting requirements.

SBA Letter: The SBA office cited the joint trade associations’ request that the CFPB extend the comment period by 45 days to Feb. 20. The Office of Advocacy reiterated that additional time is needed given the proposal’s size, complexity, and potential impact on community banks and small businesses.

Background: Section 1071 requires financial institutions to collect and report certain data on credit applications from women-owned, minority-owned, and small businesses, including the race, sex, and ethnicity of the principal owners.

Summary: ICBA offers a summary of the proposed rule, including key definitions, collection and reporting standards, how the data will be maintained and published, and more.

Narrow Exemption: In a national news release, ICBA said it strongly supports a robust community bank exemption, but the proposal’s exemption for those that originate fewer than 25 loans per year is far too narrow.