House Small Business chair asks CFPB to explain rulemaking actions

The head of the House Small Business Committee wants to make sure the Consumer Financial Protection Bureau (CFPB) isn’t overly burdening small businesses.

Committee Chairman Steve Chabot (R-Ohio) sent a letter to CFPB Director Richard Cordray on Tuesday asking for more information on two recent rulemaking actions. 

Chabot said the committee wants to know more about CFPB’s request for information on the small business financing market to better implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

{mosads}The provision in the law requires financial institutions to compile, maintain and report information concerning credit applications made by women-owned, minority-owned and small businesses.

The request for information CFPB put out in May asked small businesses, financial institutions and community advocates to share information on the various financial products that are offered to small businesses, including women-owned and minority-owned small businesses, as well as initial feedback on challenges small businesses may face in accessing credit.

The committee also wants more information on how the bureau conducted its small business review of its new rules for payday lenders.

Under the Small Business Regulatory Enforcement Fairness Act, CFPB is required to coordinate a panel to seek input from small businesses on its proposed rules.

“Small business owners frequently raise concerns to the committee about the challenges of access to capital and how it prohibits job creation and business expansion,” Chabot wrote.

“As Congress looks for ways to create an environment for small businesses to flourish, the committee is wary of increased reporting requirements and onerous regulations, which acutely impact small businesses.”