WASHINGTON (Reuters) -The U.S. Consumer Financial Protection Bureau (CFPB) on Wednesday proposed new requirements for financial institutions to collect and report data on small businesses’ access to credit in a bid to boost transparency and fair lending.
The proposed rule would require financial institutions report the amount and type of small business credit applied for and extended, demographic information about small business credit applicants, and key elements of the price of the credit offered, the consumer watchdog said in a statement.
The requirements are a long-awaited part of the broader Wall Street reforms in the wake of the 2008 financial crisis. They would apply to a wide range of products, including term loans, lines of credit, credit cards and merchant cash advances, the CFPB said.
The proposed plan will be open to public comment for 90 days before the agency finalizes the rule.
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