The nullification of CFPB’s attempt to collect small-business data passed through the Senate 53-44.
This week, Sen. John Kennedy (R-La.) introduced a resolution to nullify the Consumer Financial Protection Bureau’s (CFPB’s) small-business data collection rule. Senators agreed to the nullification 53-44.
The CFPB has been working for more than a decade to draft and ratify a rulemaking on how to collect demographic and other sensitive data related to small-business loans and lending from financial institutions.
While collection of this information could prove impactful in how the federal government provides tools and resources for the small-business community, supporters of Sen. Kennedy’s nullification say the CFPB’s 1071 proposal in its current form is too wide in its scope of who would be required to provide information from small-business owners and what banks would need to ask.
Despite passage in the Senate, the nullification resolution will require a favorable vote in the House, which is currently embroiled in inter-party squabbling over speaker, as well as signature from the President, who has said he will not support the nullification.
Follow NSBA as we continue tracking this resolution on Capitol Hill.