Americans for Financial Reform Urges Equity, Fairness in Small Business Lending

Consumer Group Pushes CFPB to Take Action on Equitable Lending

Photo by Tim Mossholder on Unsplash

In response to a proposed rule issued by the Consumer Financial Protection Bureau (CFPB) relative to small business lending, consumer advocacy group Americans for Financial Reform (AFR) is calling for continued action to ensure equity for businesses owned by women and people of color.

AFR’s letter to the CFPB indicates the organization is generally supportive of the new rule and finds it will improve equity in lending.

The proposed rule takes significant and vital steps to assess and enforce compliance with fair lending and anti-discrimination statutes, to identify community development small business capital needs, and to improve transparency in small business credit and lending markets. AFREF wholeheartedly supports the intent of the proposed rule and urges the CFPB to finalize the rule promptly with modest suggested improvements.

The response from AFR suggests that the status quo is problematic:

This lack of equitable access to small business credit and capital contributes to the racial wealth gap. Small businesses are important routes to wealth building. But persistent racial and gender structural…