A bill introduced this week by Sen. John Kennedy, R-La., would repeal the CFPB’s small business data collection rule under Section 1071 of Dodd-Frank. House Small Business Committee Chairman Roger Williams, R-Texas, introduced the House version of the bill last week.

The rule requires financial institutions to collect and report certain data on applications for credit to women-owned, minority-owned, and small businesses.

“This bill would provide important regulatory relief to credit unions and the small businesses that depend on them,” said Carrie Hunt, America’s Credit Unions Chief Advocacy Officer. “Credit unions are here to partner, support, and elevate America’s small businesses, and the CFPB’s misguided rule would be an obstacle to this relationship with no tangible benefit.”

America's Credit Unions wrote Kennedy in support of the bill. 

Luminate – Louisiana’s Credit Unions Director of Legislative Advocacy Anthony Ware II thanked Kennedy for introducing the bill.

“We support Senator Kennedy’s efforts to repeal the CFPB’s Section 1071 rule, which places unnecessary compliance burdens on credit unions and could limit their ability to serve small businesses effectively,” he said. “Rolling back this rule would help ensure credit unions can continue providing accessible and responsible financing without excessive regulatory obstacles.”

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