Velázquez Introduces Legislation to Expand Section 1071 to Non-Bank Lenders

Velázquez Introduces Legislation to Expand Section 1071 to Non-Bank Lenders

Washington D.C.— Today, Rep. Nydia M. Velázquez (D-NY) introduced H.R. 7351 the Promoting Fair Lending to Small Businesses Act. This legislation would amend the Dodd-Frank Act of 2010 to require that non-bank lenders be covered by the rules implemented under Section 1071. This bill will allow the Consumer Financial Bureau (CFPB) to broaden these reporting and examination requirements to non-bank lenders such as the growing fintech sector.

"This bill will play an important role in applying the same standards for all lenders who make loans for small businesses, and especially those that have been historically underserved by lenders such minority- and women-owned businesses," said Velázquez. "I was proud to help support the inclusion of Section 1071 in the Dodd-Frank Act at the time of its passage, and this bill is a commonsense step to help small businesses get the responsible credit options they need to drive America's economy forward. As we saw with the PPP program, fraudulent loans were a major problem for small businesses, and this bill will help prevent unscrupulous lenders from seeking to take advantage of America's small businesses."

The bill text can be found here.