Here’s AN EMAIL you can copy and send (SEE PREVIOUS PAGE FOR CONTACT INFORMATION).

 

Dear Senator [INSERT NAME],

I’m a resident of [YOUR STATE] writing to voice my support for the CFPB regulations on Section 1071 of the Dodd-Frank Act. I believe small business lending data is critical to ensuring fair access to capital to tackle the historic disparities in this country. It has been over a decade since the Dodd-Frank Act was passed and the CFPB has taken years to develop this very thoughtful policy after input from industry, advocates and the public. 

Concerns about privacy, especially for applicants in small and rural communities, are unfounded just as those same concerns were voiced after the implementation of the Home Mortgage Disclosure Act (HMDA) never materialized. The CFPB works tirelessly to protect the data that is shared with it and the data that is released is aggregated. Also, the CFPB only requires the lender to disclose information about applicants. Applicants can choose not to provide any information for disclosure to the CFPB.

Much like when HMDA was passed, Section 1071 will improve the small business lending market:

  • By increasing transparency of pricing, terms and conditions, and action taken on applications, 1071 data is likely to curb excessive pricing, reduce abusive terms and increase access to credit for traditionally underserved small businesses.

  • Lenders will also realize benefits in terms of improved ability to gauge their competitive position in the market and opportunities to identify untapped market segments and serve new customers.

  • Estimated compliance costs are minimal when compared to the net income lenders generate from originating small business loans.

  • The final rule covers banks, credit unions, online lenders, farm credit system lenders, government lenders, nonprofits, and a wide range of lending products, including agricultural credit. It will likely result in increased lending to underserved businesses, including farms, as lenders will now annually report on their lending broken down by race, ethnicity, gender, and sexual orientation of the business owners.

For all these reasons, we urge you to please vote NO on Senate Joint Resolution 32, the Congressional Review Act resolution on Section 1071 of the Dodd-Frank Act.