Credit unions support a bill introduced by Rep. Roger Williams, R-Texas, to repeal the small business loan data collection requirements established under Section 1071 of Dodd-Frank. Williams is chair of the House Small Business Committee.

The rule requires financial institutions to collect and report certain data on applications for credit to women-owned, minority-owned, and small businesses. Credit unions believe the rule will create compliance burdens with little benefit. America’s Credit Unions, Cornerstone League, and Rally Credit Union filed a legal challenge against the rule, which was denied by the U.S. District Court of the Southern District of Texas.

“Supporting regulatory relief for America’s small businesses is critical for the prosperity of our country. America’s Credit Unions is proud to support Congressman Williams’ bill to repeal the small business loan data collection requirements established under Section 1071 of the Dodd-Frank Act,” said Carrie Hunt, America’s Credit Unions chief advocacy officer. “The requirements should be appropriately tailored to ensure the health and financial needs of small businesses continue to be met. The American Dream of owning a business is one that everyone should have the opportunity to pursue, and credit unions are ready to partner on the endeavor.”

“We applaud Rep. Williams’ efforts to minimize regulatory burdens on community lenders and expand small business owners’ access to credit,” said Jim Phelps, EVP and chief advocacy officer, Cornerstone League. “Credit unions, especially smaller ones, are disproportionately affected by complex regulations. Repealing Section 1071 would enable credit unions to focus on their core mission—serving their members and communities.”

The House Financial Services Committee discussed the legislation at a hearing Wednesday, with several witnesses agreeing with America’s Credit Unions’ stance that the 1071 rule will lead to increased burdens and costs.

Compliance with Section 1071 final rule is scheduled to begin in July 2025 for Tier 1 institutions, followed by January 2026 for Tier 2 and October 2026 for Tier 3.