Rise Economy and the National Association for Latino Community Asset Builders seek to participate in a case to ensure a robust defense of Section 1071 and its timely implementation.
Washington, D.C. –Economic justice organizations Rise Economy, and the National Association for Latino Community Asset Builders (NALCAB) are taking legal action to defend a rule published by the Consumer Financial Protection Bureau (CFPB) that requires the collection of data to ensure fair lending practices for small businesses and businesses owned by women and people of color.
Finalized in 2023, the CFPB rule under threat requires the collection and publication of crucial data about loan applications by small businesses and those owned by women and people of color. The “Small Business Lending Rule” is required by Section 1071 of the Dodd-Frank Act and is essential to identifying and addressing discriminatory practices, ensuring equitable access to credit for underserved communities, and promoting accountability in lending.
Rise Economy and NALCAB are represented in the matter by Democracy Forward.
The motion highlights the significant risks the incoming presidential administration poses, which has signaled hostility toward the CFPB. Statements from President-Elect Trump’s advisors, including suggestions of dismantling the CFPB, raise serious concerns about the defense of Section 1071 under the new administration.
“Small businesses are the backbone of our economy, and transparent lending practices are key to their success,” said Skye Perryman, President and CEO of Democracy Forward. “This rule is critical to ensuring fair lending practices and addressing systemic inequities that harm entrepreneurs.”
In 2020, Rise Economy and NALCAB, represented by Democracy Forward, successfully sued the CFPB for delaying the implementation of Section 1071, resulting in a settlement that required the CFPB to finalize the rule. However, with the implementation date fast approaching in July 2025, the organizations are stepping in to prevent further delays that would harm small businesses and the communities they serve.
“Data collection under Section 1071 is not just a technical requirement—it’s a necessary vehicle to ensure that underserved neighborhoods and BIPOC, women, and LGBTQ+ owned small business owners are not discriminated against or redlined,” said Paulina Gonzalez-Brito, CEO at Rise Economy. “We cannot afford any further delay or weakening of these critical protections.”
“Section 1071 is vital to ensuring that small businesses in underserved communities are not locked out of opportunities due to systemic inequities,” said Marla Bilonick, President and CEO at NALCAB. “This data will shine a light on lending practices, hold financial institutions accountable, and empower leaders to drive positive change for underserved businesses. We are proud to join this effort to protect these essential safeguards.”
The organizations fear that without their intervention, the rule’s timely implementation may be compromised, undermining its purpose and impact.
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Democracy Forward is a national legal organization that advances democracy and social progress through litigation, policy, public education, and regulatory engagement. For more information, please visit www.democracyforward.org.