Small LENDER Act

Delay and safe harbor for lenders

If enacted, the bill would give lenders covered by the CFPB final rule three years from the rule's issue date to come into compliance. After that three-year period, it would create a two-year safe harbor when lenders must comply but could not be penalized for failing to comply. The bill would say the covered rule is the CFPB final rule titled "Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)" (88 Fed. Reg. 35150, May 31, 2023). It would also define which entities are covered: entities that engage in financial activity (partnerships, corporations, trusts, cooperatives, etc.) that originated at least 500 small‑business credit transactions in each of the prior two calendar years. Finally, the bill would define "small business" for the data collection as an entity with $1,000,000 or less in gross annual revenue in its most recently completed fiscal year.