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Booker, Brown Applaud CFPB's Final Rule to Increase Transparency and Access to Capital for Small Businesses

Press Release

Date: June 2, 2023
Location: Washington, DC
Issues: Finance and Banking Economy and Fiscal

"The final rule issued by the CFPB is a significant step forward in promoting fair lending practices and dismantling barriers that hinder entrepreneurs, especially those from underserved communities. By collecting and reporting data on small business credit applications, this rule will shed light on the challenges faced by women, minority, and other entrepreneurs in accessing capital.

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Entrepreneurs from underserved communities often face steep obstacles in accessing capital, including outright discrimination…This gap in startup capital puts minority- and women-owned small businesses at a severe disadvantage and increases their reliance on credit. At the same time, research has also documented how minority-, women-, and LGBTQ+-owned businesses are more likely to be denied loans and can pay steeper interest rates.

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The success of our economy depends on the vitality and prosperity of small businesses. We commend the CFPB for finalizing this long overdue rulemaking to fulfill a statutory mandate from Dodd-Frank and look forward to the additional transparency and increased access to fair credit this rule will bring to small business lending."


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