1071 Repeal to Protect Small Business Lending Act

This bill proposes to eliminate the small business loan data collection requirements established under Section 704B of the Equal Credit Opportunity Act (ECOA). These requirements, originally added by Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, mandate that financial institutions collect and report specific data on small business loans. The bill's findings assert that these regulations have led to increased compliance costs for lenders, which in turn may reduce the availability of credit for small businesses. Furthermore, the legislation highlights that these regulatory burdens disproportionately affect smaller financial institutions , such as community banks and credit unions, which are crucial providers of small business lending. By repealing these provisions, the bill aims to reduce regulatory barriers and foster greater access to credit for small businesses across the country.