This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

10.25 Small Business Loan Data Collection

<< Title X Overview

10.25 Small Business Loan Data Collection

 

 


10.25.   Small Business Loan Data Collection.  The Act includes a data collection provision for small business lending that is intended to facilitate enforcement of the fair lending laws and to enable interested constituents to identify business and community development needs of women-owned, minority-owned, and small businesses.   The Act provides that in the case of any application to a financial institution for credit by a women-owned, minority-owned, or small business, the financial institution must inquire whether the business is such a business.  The financial institution must maintain a separate record of the responses to such inquiries.

            An applicant for credit may refuse to provide the requested information.  Where feasible, the employees involved in making any determination concerning an application for credit shall not have access to the information requested.  If those employees do have access, the financial institution must notify the applicant of such access and inform the applicant that the institution may not discriminate on the basis of that information.

            A financial institution will be required to compile certain information regarding applications by women-owned, minority-owned, and small businesses.  This information is to disclose with respect to each application: (i) the number of the application and the date on which the application was received; (ii) the type and purpose of the credit applied for; (iii) the amount of the credit applied for, and the amount of the credit approved; (iv) the type of action taken on the application, and the date of that action; (v) the census tract in which the principal place of business of the loan applicant is located; (vi) the gross annual revenue of the business in the last fiscal year of the business loan applicant preceding the date of the application; (vii) the race, sex, and ethnicity of the principal owners of the business; and (viii) any additional information that the Bureau determines would aid in fulfilling the purposes of this section.  The information compiled shall not include any personally identifiable information.

            As with HMDA data, this data is to be submitted annually to the Bureau.  The Bureau may delete or modify data for purposes of release to the public if such action would advance a privacy interest.  It will be made available to any member of the public, upon request, in a form determined by the Bureau.  It will also annually be made available to the public generally by the Bureau, in the form and manner set by the Bureau.  The Bureau may make exceptions to any requirement of this section and may exempt any financial institution from these requirements. [§ 1071]