CFPB Proposal to Help SMBs Gain Access to Credit

The Consumer Financial Protection Bureau (CFPB) proposed a new rule Wednesday (Sept. 1) that will help small- to medium-sized businesses (SMBs) get access to credit, according to a press release.

The proposal, which is mandated by Congress in the Dodd-Frank Act, entails having lenders reveal information about their lending to SMBs, such as “the amount and type of small business credit applied for and extended, demographic information about small business credit applicants, and key elements of the price of the credit offered,” the release stated.

As part of the proposal, the CFPB launched a web portal for SMB owners, according to the release.

“Small businesses are the primary job creators and wealth builders in communities across the country,” said CFPB Acting Director Dave Uejio in the release. “After homeownership, small business ownership is the primary means by which families and communities build wealth. Yet too often, small business development is starved for want of access to responsible, fairly priced credit.”

“Today, we are proposing a rule that would help us all learn how small enterprises fare when trying to access financing, and what barriers are holding them back from further prosperity,” he said in the release. “Over the next three months, we look forward to hearing from small business entrepreneurs, community organizations, researchers, lenders and others about how we can improve on this proposal to make sure the final rule serves the purposes Congress had in mind when it mandated this rulemaking in 2010.”

“In addition to requesting comments from small business entrepreneurs on our proposal, we’re also encouraging small business entrepreneurs to share their own stories about applying for credit through our new web portal specifically designed for them,” he said in the release.

In July, the CFPB launched an online tool to help renters and landlords search and apply for help to cover rent, utilities and other costs. The Rental Assistance Finder connects tenants and landlords with state and local programs disbursing federal assistance nationwide.

Read more: CFPB Rolls Out Rental Assistance Finder for Renters and Landlords

A CFPB analysis of Census Household Pulse Survey data found that from June 23 to July 5, 16% of adults living in rentals said they were behind on payments. Of those late on rent, 49% — roughly 3.6 million people — said that eviction in the next two months was “somewhat or very likely.”