Consumer Financial Protection Bureau(CFPB) Finalizes Rule to Create a New Data Set on Small Business Lending in America.
The new rule aims to achieve several goals, including providing a comprehensive view of small business lending and covering diverse forms of credit by all types of lenders. The rule will use straightforward definitions and streamlined forms to make it easy for lenders to collect data from small business credit applicants, and it will phase in implementation for the largest lenders first.
Under the rule, small businesses will be able to self-identify as women-, minority-, or LGBTQI+-owned, and loan officers will not be required to make their own determinations of an applicant’s race, ethnicity, or any other demographic information. The rule also reduces duplicative reporting requirements and allows for the use of new digital tools developed by industry and technology partners.
The CFPB intends to issue a supplementary proposal that would provide additional implementation time for small lenders that have demonstrated high levels of success in serving their local communities, as measured by their performance under relevant frameworks like the Community Reinvestment Act and similar state laws.
LOQUAT Inc., an innovative financial technology company, developed and operates a proprietary banking as a service platform designed with the small business customer in mind by a world-class team of former banking executives, fraud specialists, technology and digital transformation experts, and business owners. The end-to-end-platform allows credit unions and community banks to improve or launch a streamlined digital banking functionality aimed at serving small and medium-sized businesses (SMBs) from new account onboarding through delivering lending options, while preventing fraud without sacrificing on the user experience.
Loquat platform is built on three pillars: DataPrivacy and InformationSecurity, Transparency, and Simplicity. We use AI and ML technologies to remove biases that exist within the financial industry.
Learn more about Loquat platform: https://loquatinc.io/