WASHINGTON, D.C. - Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, released the following statement in response to the Office of Management and Budget Director, Russell Vought, issuing an updated rule to weaken implementation of Section 1071 small business lending data collection requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act:
“Small businesses are the backbone of the American economy. The small business data collection requirements of Section 1071 of Dodd-Frank were designed to shine a light on which small businesses are getting access to affordable credit and who is being left behind. Instead, this Administration is dimming that light at a time when small businesses, especially minority-owned and women-owned businesses, are already fighting to stay afloat.
By raising the reporting threshold so far fewer lenders have to comply and carving out entire categories of lending like agricultural loans and merchant cash advances, among other harmful reforms, this updated rule guts the very data small businesses and the public need. And let’s not ignore what else is missing. The removal of data collection on LGBTQI+-owned businesses is deeply troubling. We fought to ensure these entrepreneurs were seen and counted, not ignored and discriminated against, because you cannot address inequities you refuse to measure.
This is not about streamlining. It is about shielding bad actors and limiting transparency to the detriment of our entrepreneurs. For decades, lenders have complied with the Home Mortgage Disclosure Act (HMDA), providing transparency of the mortgage lending market for the benefit of potential homeowners—small businesses should be treated no differently. At a time when small businesses are closing their doors under the burden of Trump’s unlawful tariffs and failed economic policies, this Administration is choosing to undermine our entrepreneurs.
I will not stop until Section 1071 is fully implemented as Congress intended, so we can finally have all of the data needed to hold lenders accountable and build an economy that works for everyone, not just those at the privileged top.”
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