Small Lenders Exempt from New Data and Excessive Reporting Act.
This Act amends the Equal Credit Opportunity Act to modify definitions and timelines regarding small business loan data collection. It exempts entities originating fewer than 500 small business credit transactions annually from the definition of a financial institution subject to the rules. For covered institutions, it establishes a 3-year compliance period followed by a 2-year safe harbor where compliance is required but no penalties are imposed for failure to comply.
Key points
Financial institutions originating fewer than 500 small business credit transactions in each of the previous two years are excluded from the reporting requirements.
The Act provides a 3-year period to comply with the covered rule, followed by a 2-year safe harbor period without penalties for non-compliance.
The definition of a "small business" is redefined as an entity with gross annual revenues of $1,000,000 or less.
Introduced
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