Small LENDER Act
- Bill Number
- H.R. 941
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-06-18: Placed on the Union Calendar, Calendar No. 610.
- Last Updated
- 2026-06-27T20:41:19Z
AI-Generated Summary
## Purpose The legislation amends the Equal Credit Opportunity Act to delay and limit requirements for financial institutions to collect and report data on small business lending. It aims to reduce regulatory burdens on smaller lenders while maintaining some core data collection rules.
## Key Provisions
- Delayed compliance: Financial institutions must begin complying with the rules no earlier than June 1, 2031, with a two-year safe harbor period during which enforcement is prohibited.
- Exemptions for small institutions: Lenders are exempt if they originated fewer than 2,500 small business credit transactions in each of the prior two years or hold less than $10 billion in assets.
- Reduced data collection: Removes several required data points (including certain applicant characteristics) and prohibits institutions from using visual observation or other non-applicant sources to gather information.
- Applicant disclosures: Institutions must inform applicants in writing that the data is required by the Bureau of Consumer Financial Protection (CFPB), that providing it is voluntary, and that responses will not affect credit decisions. The CFPB must create a model form limited to one page in plain English.
- Response rate protection: Institutions cannot be penalized based on the percentage of applicants who provide the requested information.
- Updated definition: Redefines "small business" as any entity with gross annual revenues of $1 million or less.
## Significant Changes to Existing Law This bill substantially modifies Section 704B of the Equal Credit Opportunity Act by striking the original subsection (d), redesignating later subsections, and narrowing the scope of required data elements. It introduces new exemptions, a delayed effective date, and restrictions on how data may be obtained, shifting from broader mandatory collection to more limited, applicant-driven reporting.
## Potential Impacts
- Government agencies: The CFPB will receive less small business lending data and must develop a model disclosure form, potentially affecting its ability to monitor lending patterns.
- Citizens and businesses: Small financial institutions gain relief from compliance costs, while small business applicants receive clearer information about voluntary data requests. Larger institutions face fewer changes.
- International relations: No direct effects identified.
## Main Stakeholders Affected
- Small and mid-sized financial institutions (banks and lenders).
- Small businesses seeking credit.
- The Bureau of Consumer Financial Protection.
- Congressional committees overseeing financial regulation.
## Notable Legal, Constitutional, or Political Implications The changes address implementation challenges with existing data collection mandates by limiting scope and timing. This may raise questions about the balance between regulatory oversight and institutional burden, though the bill operates within existing statutory authority without altering constitutional frameworks.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (16)
Rep. Meuser, Daniel [R-PA-9], Rep. Wagner, Ann [R-MO-2], Rep. Huizenga, Bill [R-MI-4], Rep. Timmons, William R. [R-SC-4], Rep. Moore, Tim [R-NC-14], Rep. Williams, Roger [R-TX-25], Rep. Haridopolos, Mike [R-FL-8], Rep. Nunn, Zachary [R-IA-3], Rep. Hinson, Ashley [R-IA-2], Rep. Mackenzie, Ryan [R-PA-7], Rep. Womack, Steve [R-AR-3], Rep. Kelly, Trent [R-MS-1], Rep. Buchanan, Vern [R-FL-16], Rep. Shreve, Jefferson [R-IN-6], Rep. Rose, John W. [R-TN-6], Rep. Wilson, Joe [R-SC-2]
Recent Actions
- 2026-06-18: Placed on the Union Calendar, Calendar No. 610.
- 2026-06-18: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-702.
- 2026-06-18: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-702.
- 2026-04-21: Ordered to be Reported by the Yeas and Nays: 26 - 22.
- 2026-04-21: Committee Consideration and Mark-up Session Held
- 2025-02-04: Referred to the House Committee on Financial Services.
- 2025-02-04: Introduced in House
- 2025-02-04: Introduced in House
Bill Versions
- Small Lenders Exempt from New Data and Excessive Reporting Act — issued 2025-02-04 — PDF (3 pages)
- Small Lenders Exempt from New Data and Excessive Reporting Act — issued 2026-06-18 — PDF (8 pages)