Consumer Groups Push for Fairness in Small Business Lending
Consumer Bureau Rule has Civil Rights Implications
As the Consumer Financial Protection Bureau (CFPB) examines small business lending and relevant data collection, consumer advocacy groups are pushing for equity and fairness in the industry.
The HOPE Policy Institute released a letter to the CFPB signed by 40 organizations from the Deep South and highlighting the need for action to create a level playing field in the arena of small business lending.
“The proposed rule for collecting small business lending data from financial institutions has the potential to be a significant step toward creating a level playing field for small businesses, ending discriminatory lending practices, and helping close the racial wealth gap here in the Deep South.”
In the Deep South states of AL, AR, MS, LA, and TN, one in three businesses are owned by people of color, and nearly 40% are owned by women. In Mississippi and Louisiana, more than 20% of businesses in the state are Black-owned. They are integral to the fabric of our communities and economies, but yet do not receive equal access to capital as other businesses.
Ensuring fair lending for these businesses is necessary for the economic prosperity of our region. The CFPB’s…
