OFN recently submitted comments to the Consumer Financial Protection Bureau (CFPB) on the Notice for Proposed Rulemaking (NPRM) as part of the agency’s process to implement Section 1071 of the Dodd-Frank financial reform legislation.
The implementation of Section 1071 will provide the first comprehensive dataset on the small business lending industry, allowing greater understanding of how financial institutions provide credit to small businesses and the overall financial health of our nation’s small businesses, especially women- and minority-owned businesses.
After receiving feedback from our membership, OFN’s comments highlighted:
- Need for the rule to cover as many lenders and financial products as possible to have a broad understanding of the small business lending market
- Importance of aligning Section 1071 with CDFI Fund reporting requirements to minimize the burden on CDFIs
- Extending the proposed implementation timeline to allow small mission lenders with limited capacity additional time to develop systems and infrastructure needed to comply with the regulation
In the coming months, the CFPB will review comments and put forth a final rule. OFN will continue to engage with the agency and monitor the impact of the rule’s implementation on the CDFI industry.
For more information on Section 1071 and the potential impact on CDFIs, contact OFN SVP, External Affairs Dafina Williams.