What This Bill Does
The Small LENDER Act would change how the Equal Credit Opportunity Act’s small-business loan data collection rules work. It pushes the initial compliance date to June 1, 2031, gives a 2-year safe harbor from enforcement after that date, and exempts lenders with under $10 billion in assets or fewer than 2,500 small-business credit transactions in each of the prior two years. It also lets lenders tell applicants that they are not required to provide the data and that refusing will not affect their credit request. The bill applies to financial institutions and small-business loan applicants, and it defines a “small business” as an entity with $1,000,000 or less in gross annual revenues.
- Pushes required compliance with Section 704B data rules to June 1, 2031.
- Creates a 2-year enforcement safe harbor after the compliance date.
- Exempts lenders with under $10 billion in assets or fewer than 2,500 small-business credit transactions in each of the prior 2 years.
- Requires a plain-English, one-page-or-less model disclosure form from the CFPB.
- Defines “small business” as gross annual revenues of $1,000,000 or less.
Who This Bill Affects
If you are a small-business owner seeking credit, this bill mostly affects how a lender can ask for and collect demographic and business data—not whether you can get the loan itself. You would be told that providing the information is optional and that your response will not affect the credit decision, while many smaller banks and credit unions would be exempt from the rule altogether because of the bill’s under-$10 billion asset and under-2,500-loans thresholds. For the general public, the practical effect is limited and mostly felt through the lending system rather than through direct personal benefits or costs.
See how this bill affects you — sign in for a personalized analysisWho Supports & Opposes This
- Community banks and smaller lenders They may argue the rule is expensive and operationally complex, especially for institutions with limited compliance staff. The delayed date, safe harbor, and exemption threshold would reduce implementation burdens and give lenders more time to adjust their systems.
- Small-business lenders and credit unions They may support clearer disclosures and a model form because it could reduce confusion and make applicant communications more standardized. The bill also limits the rule to larger institutions, which supporters can frame as focusing regulation on lenders best able to absorb the costs.
- Small-business advocates who worry about paperwork hurdles Some may see value in telling applicants that the information is voluntary and does not affect the loan decision. That could make owners more comfortable applying and reduce fear that demographic questions will influence underwriting.
- Consumer and fair-lending advocates They may argue the bill delays useful lending data until 2031 and then blocks enforcement for two more years, slowing oversight of discrimination and access-to-credit trends. A long delay can leave regulators with less timely information to identify disparities.
- Civil-rights and community development groups They may object to the exemption for lenders under $10 billion in assets and for institutions with fewer than 2,500 small-business credit transactions. In their view, excluding many smaller lenders could leave major parts of the small-business credit market outside the reporting system.
- Regulators and policy analysts focused on data quality They may worry that prohibiting institutions from compiling information from visual observation or other non-applicant sources could reduce completeness in some cases. They may also see the response-rate limitation as weakening tools used to assess whether institutions are complying with the law.
Key Implications
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““The Bureau may not require a financial institution to comply… until June 1, 2031.””
This delays mandatory implementation for years, giving lenders more time but postponing the federal government’s ability to use the new data collection regime.
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““The Bureau may not enforce compliance… during the 2-year period””
Even after the compliance date arrives, lenders get a temporary grace period, reducing immediate penalties and likely easing the transition.
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““A financial institution is exempt… if… less than $10,000,000,000 in assets””
This removes many smaller banks and similar institutions from the reporting requirement entirely, narrowing the rule’s reach.
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““the applicant is not required to provide such information””
Borrowers must be told the data request is optional, which may reduce pressure on applicants and improve transparency in the lending process.
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““may not compile and maintain information… using visual observation””
Lenders would have to rely on applicant-provided information rather than guessing or inferring it, which could improve consistency but also limit data completeness.
Latest Status
June 18, 2026
Placed on the Union Calendar, Calendar No. 610.
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Ask AI about this billData sourced from api.congress.gov.