Source: United States Senator Kevin Cramer (R-ND)
BISMARCK – U.S. Senator Kevin Cramer (R-ND), member of the Senate Banking Committee, joined Senator John Boozman (R-AR) in introducing the Small LENDER Act to preserve access to capital for Main Street businesses. The bill addresses a new Consumer Financial Protection Bureau (CFPB) rule which requires community banks and lenders to collect and report social data on entities earning gross annual revenues of $5 million or less in their preceding fiscal years.
“Washington bureaucrats and the Biden administration have fallen so far down the identity politics rabbit hole they actually think banks and lenders should focus on factors like race, gender, and ethnicity rather than the creditworthiness of their clients,” said Senator Cramer. “Our bill blocks attempts to politicize lending and ensures small businesses are not burdened by the CFPB’s new costly regulation.”
Specifically, the Small LENDER Act would:
- exempt the smallest lenders by establishing a 500-covered transaction threshold;
- provide small business relief by codifying a small business as one with $1 million or less in revenue;
- and give lenders and small businesses more time to comply by establishing a three-year implementation schedule plus a two-year grace period.
This legislation is endorsed by the Credit Union National Association, Farmers & Merchants Bank, Independent Community Bankers Association, Arkansas Bankers Association, and First Security Bank.
Joining Senators Cramer and Boozman are Senators Chuck Grassley (R-IA), Cynthia Lummis (R-WY), Steve Daines (R-MT) and John Kennedy (R-LA).
Click here for bill text.