In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress directed the Bureau to adopt regulations governing the collection of small business lending data. Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit to the Bureau certain data on applications for credit for women-owned, minority-owned, and small businesses. 

Section 1071 limits banks’ ability to tailor loans, which reduces access and increases the cost of credit for small businesses. With banking already one of the most heavily-regulated industries, Section 1071 creates additional reporting requirements for lending financial institutions. 

H. R. 976, recently introduced in the U.S. House of Representatives, aims to repeal the small business loan data collection requirements established under Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This bill seeks to eliminate costly regulatory burdens on financial institutions, ensuring greater access to credit for small businesses. 

We applaud the introduction of H.R. 976 and urge Congress to pass this much-needed legislation. 

We are asking all OBL members to send a letter to your member of the Ohio Congressional delegation asking them to co-sponsor the bill. Please add your personal thoughts on these changes at the top. These go directly to Representatives' offices, so personalizing your letter helps our message cut through the noise. Please consider including:

• Resources and time your institution has allocated toward regulatory compliance, especially with Section 1071.
• Specific information on how repealing Section 1071 would impact your bank's lending capabilities and consumers in your community.