Providing for Congressional Disapproval of the Rule Submitted By the Bureau of Consumer Financial Protection Relating to ``Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)''

Floor Speech

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Ms. VELAZQUEZ. Madam Speaker, I thank Ranking Member Waters for yielding.

I rise today in strong opposition to this resolution. As one of the central architects of section 1071, I understand better than most what this provision does and doesn't do.

During my time as ranking member of the Small Business Committee and as a senior member of the Financial Services Committee, I have seen women- and minority-owned small businesses struggle to access capital due to the lack of data and transparency related to small business lending.

The scant data that does exist continues to show these businesses lack the same access to financing compared to White-owned firms.

Section 1071 attempts to remedy this by requiring financial institutions to collect and report on the demographics of small business owners applying for financing.

Doing so facilitates the enforcement of fair lending laws and identifies businesses and community development needs.

Supporters of this resolution claim it will excessively burden smaller institutions. However, CFPB Director Chopra recently testified that approximately 2,000 banks will be exempted from the rule's reporting requirements.

Others claim the rule is too intrusive. Yet, safeguards like voluntary reporting--and you are going to hear time and again that this is a mandate even when I took the text in the manual and read it to the Members. It is voluntary. It is not a mandate. Unique identifiers are included in the rule. Without this information, discriminatory lending will continue.

When crafting this rule, the CFPB conducted considerable outreach to small firms and considered thousands of public comments from entrepreneurs.

During a recent Small Business Committee hearing, we received testimony that this rule will help the market better address both the lack of access to affordable capital and the rise of irresponsible lending.

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Ms. VELAZQUEZ. Madam Speaker, I will not yield.

It will allow lenders to help tailor their products and services to meet their borrower's needs and spur additional investment in small businesses without creating another government program.

If you are for smaller government spending, look right here. Let's remedy this situation where we have empirical data that minority women, small businesses, female-owned businesses, and rural businesses do not have the same access to affordable capital.

It has been 13 long years. We cannot reverse course now. To do so would be an insult to the minority-owned businesses that are counting on our support.

Madam Speaker, I urge my colleagues to vote ``no'' on this resolution.

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