1071 Repeal to Protect Small Business Lending Act

S. 557, the 1071 Repeal to Protect Small Business Lending Act, would eliminate a federal data collection requirement currently imposed on financial institutions. Under existing law, banks and other lenders must gather detailed information about applications for women-owned, minority-owned, and small business loans and report this data to the Consumer Financial Protection Bureau. This information includes the number of applications received, whether loans were approved or denied, loan amounts requested and approved, and demographic details about applicants including race, sex, ethnicity, revenue, and location.

If enacted, this bill would remove these reporting requirements. Supporters of such a repeal might argue it would reduce regulatory burden on lenders and simplify their compliance obligations. However, eliminating this data collection could reduce transparency about lending patterns and make it harder to identify potential discrimination or disparities in how different groups are treated when applying for business loans. The bill is currently in the committee stage and has not yet been voted on by the full Senate.