Final Rule from Consumer Financial Protection Bureau Will Increase Access to Capital and Transparency in Small Business Lending
Statement by Luz Urrutia, CEO of Accion Opportunity Fund, the nation’s leading Community Financial Development Institution, nonprofit small business lender, on the Bureau’s final guidelines for collecting data on small business lending
FOR IMMEDIATE RELEASE
Janel Knight Trulear
San Jose, Calif., March 30, 2023 — More than 13 years after Congress amended the Equal Credit Opportunity Act, Section 1071 of that legislation—which requires financial institutions to collect and report data on small business lending—is finally ready for implementation. I commend the Consumer Financial Protection Bureau for issuing this market-based, pro-innovation regulation today, which will better position the financial system to fully serve all our country’s entrepreneurs.
Access to capital for small businesses is, and must remain, a bipartisan priority. These are the Mom and Pop stores, in rural and urban communities, that are powering our economy—their success is America’s success. We are experiencing a small business boom with a record 10.5 million small business applications filed in the last two years. These small businesses, which employ half the nation’s private sector workforce and generate almost two-thirds of net new jobs, could be creating even more jobs and adding to our GDP, if only they had full access to quality financial services. The final guidance issued today will help entrepreneurs access desperately needed capital, allow small business lenders to tap into a robust customer segment, and reduce inequities in our economy.
Sunlight is the best disinfectant. Collecting this data will provide clarity on which small businesses are, or are not, getting access to the capital they need—as well as which lenders are positioned to increase lending to America’s diverse entrepreneurs. We cannot manage what we do not measure. The costs of compliance are minimal compared to the benefits of customer acquisition and the increased data and knowledge lenders will gain to make better decisions on lending to these customers. By implementing this amendment to America’s Equal Credit Opportunity Act, we can finally increase access to capital for small businesses, create a more transparent and successful financial services system and strengthen our economy. Policymakers must find bipartisan ground to ensure the nation’s financial sector is better equipped to build long-term, profitable relationships with America’s small business owners — now, more than ever.
To request an interview with Luz Urrutia, contact Janel Knight Trulear at (617) 875-6581 or email@example.com.
About Accion Opportunity Fund
Accion Opportunity Fund works to create an inclusive, healthy financial system that supports the nation’s small business owners by connecting entrepreneurs to affordable capital, educational resources, coaching, and networks. Through innovative partnerships and outreach strategies, we reach entrepreneurs of color, low-income entrepreneurs, and women, who often lack access to the financial services they need to build and grow their businesses. Accion Opportunity Fund Community Development is the lending arm of Accion Opportunity Fund, California Finance Lender license #6050609. Visit the organization at aofund.org to learn more about their business growth resources and funding opportunities.