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119-s-2352119th CongressWALLET

PROTECTED Act

Sponsored By: Senator Britt, Katie Boyd [R-AL]

Introduced

Summary

Would require applicant-provided demographic data for small-business loan reporting and add privacy and procedural limits.

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  • Small-business applicants: Lenders would have to provide written notice that the Bureau of Consumer Financial Protection (CFPB) requests demographic information, that responding is voluntary, and that answers will not affect credit decisions.
  • Covered lenders and firms: Only entities that originated at least 2,500 small-business credit transactions in each of the previous two years would be covered. Small business is defined as firms with gross annual revenues of $1 million or less, and institutions with under $10 billion in assets plus certain Farm Credit, community development, and equipment or vehicle lenders are excluded.
  • Rulemaking and privacy safeguards: The Bureau must issue notice-and-comment rules before deleting or modifying collected data and explain how changes advance privacy. The bill bars assigning demographic traits based on visual observation, prohibits using response rates to show compliance, creates a two-year safe harbor before enforcement, and ties the effective date to three years after the Bureau completes required cost and paperwork analyses.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

New data rules for small-business loans

This bill would change how lenders collect and report small-business applicant data. It would require lenders to give a written notice that the CFPB requires collection and annual reporting. The notice would say answers are voluntary and will not affect credit decisions. Lenders could not keep demographic data they learned by looking at or guessing. Lenders could not use the share of applicants who give data to show compliance. It would apply to lenders that in each of the last two years made at least 2,500 small-business loans. A small business would be an entity with $1,000,000 or less in prior-year revenue. Some lenders would be excluded, like those with under $10 billion in assets and Farm Credit System lenders. Community development lenders and equipment or vehicle financiers would also be excluded. Before deleting or changing reported data, the CFPB would need to issue rules after notice and comment. Those rules would have to describe the privacy interest served. These changes would take effect three years after the CFPB completes required cost-benefit studies. CFPB enforcement would be barred for two years after that effective date.

Sponsors & CoSponsors

Sponsor

Britt, Katie Boyd [R-AL]

AL • R

Cosponsors

  • Sen. Boozman, John [R-AR]

    AR • R

    Sponsored 7/17/2025

Roll Call Votes

No roll call votes available for this bill.

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