Small LENDER Act

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1806 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 1806

 To amend the Equal Credit Opportunity Act to modify the requirements 
  associated with small business loan data collection, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 27, 2023

  Mr. Hill (for himself, Mr. Williams of Texas, and Mr. Luetkemeyer) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Equal Credit Opportunity Act to modify the requirements 
  associated with small business loan data collection, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Lenders Exempt from New Data 
and Excessive Reporting Act'' or the ``Small LENDER Act''.

SEC. 2. SMALL BUSINESS LOAN DATA COLLECTION.

    Section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c-
2) is amended--
            (1) in subsection (g), by adding at the end the following:
            ``(4) Compliance.--
                    ``(A) In general.--With respect to any rules or 
                guidance issued under this subsection on or after the 
                date of the enactment of this paragraph, the Bureau 
                shall provide a financial institution a 3-year period 
                to comply with such rule or guidance, regardless of the 
                date on which such financial institution began its 
                operations.
                    ``(B) Safe harbor.--With respect to any rules or 
                guidance issued under this subsection on or after the 
                date of the enactment of this paragraph, beginning on 
                the date after the last day of the 3-year period 
                described in subparagraph (A), the Bureau shall provide 
                a 2-year safe harbor to financial institutions during 
                which each such financial institution is required to 
                comply with the rule or guidance but not subject to any 
                penalties for failure to comply.''; and
            (2) in subsection (h)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Financial institution.--The term `financial 
        institution' means--
                    ``(A) any partnership, company, corporation, 
                association (incorporated or unincorporated), trust, 
                estate, cooperative organization, or other entity that 
                engages in any financial activity; and
                    ``(B) in each of the two calendar years preceding 
                the first day of the safe harbor period described in 
                subsection (g)(4)(B), originated not less than 500 
                credit transactions for small businesses.''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Small business.--The term `small business' means any 
        entity with gross annual revenues of $1,000,000 or less in the 
        most recently completed fiscal year preceding the first day of 
        the safe harbor period described in subsection (g)(4)(B).''.
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