Protecting Small Businesses from Government Overreach

Once again, a Biden Administration federal agency is looking to expand their powers unconstitutionally at the expense of American families and small businesses.

On May 31, 2023, Biden’s Consumer Financial Protection Bureau (CFPB) published a rule that orders lenders to gather and report small business loan application data, including whether the firms are owned by women or racial minorities.

If this overreaching rule takes effect, smaller mom-and-pop banks would be forced to spend at least $100,000 to comply, and in turn, mid-sized lenders would likely fund fewer small businesses in order to not have to deal with these extra costs.

This rule is completely unconstitutional, and the courts have even temporarily blocked its implementation until the Supreme Court issues a ruling on the crippling regulation.
Sen. John Kennedy’s legislation, S.J. Res. 32, repeals the final rule issued by the Consumer Financial Protection Bureau titled Small Business Lending under the Equal Credit Opportunity Act (Regulation B) that requires financial institutions to collect and report credit application data for small businesses to the bureau and protects small businesses from government overreach.

House Republicans will always stand up for small businesses and protect the American dream against harmful federal power-grabs.