H.R. 941 — Small LENDER Act

This section amends small business lending data collection requirements under Section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c-2), which requires certain financial institutions to compile, maintain, and report to the Consumer Financial Protection Bureau (CFPB) applicant and application data—including demographics on race, ethnicity, and sex—for credit extended to small businesses (to identify potential discrimination and credit needs). Specifically, the section— (1) adds to subsection (g) a three-year compliance period for financial institutions with the CFPB's final rule titled “Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)” (88 Fed. Reg. 35150; published May 31, 2023), beginning on the issuance date of that rule, followed by a two-year safe harbor period during which compliance is required but no penalties apply for noncompliance; and (2) revises definitions in subsection (h) to— (A) define financial institution as any partnership, company, corporation, association, trust, estate, cooperative organization, or other entity that engages in any financial activity and, in each of the previous two calendar years, originated not less than 500 credit transactions for small businesses; and (B) define small business as any entity with gross annual revenues of $1,000,000 or less in the most recently completed fiscal year.