February 27, 2020
On February 26, 2020, as part of a settlement agreement with two consumer advocacy groups, the Consumer Financial Protection Bureau agreed to release an outline of proposed small business lending regulations implementing Section 1071 of the Dodd-Frank Act. Section 1071 was enacted to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses. The Bureau has not yet issued regulations implementing Section 1071.
The California Reinvestment Coalition and the National Association for Latino Community Asset Builders sued the Bureau seeking an order compelling the Bureau to issue the Section 1071 implementing regulations in a timely manner. The settlement requires the Bureau to release an outline of proposed regulations by September 15, 2020. The settlement also requires the Bureau to convene a "Small Business Advocacy Review" panel by October 15, 2020, or, if panel members are not available to convene, as soon as practicable thereafter.