STATEMENT: Court Ruling in Texas a Regrettable Setback for Small Businesses
For immediate release: August 2, 2023
CONTACT:
Lisa Marlow | Media Relations Manager
(202) 535-3229 | [email protected]
Washington, D.C., August 2, 2023 — Statement on the Preliminary Injunction Granted in Texas Bankers Association et al v. Consumer Financial Protection Bureau et al., made by Marla Bilonick, President & CEO, National Association for Latino Community Asset Builders (NALCAB) on behalf of the Responsible Business Lending Coalition:
The preliminary injunction issued by the U.S. District Court for the Southern District of Texas on Monday is a regrettable setback for small businesses across the country. The Judge ruled that the banks in the case did not need to comply with the CFPB’s rule implementing Section 1071 of the Dodd Frank Act, enacted in 2010. The Responsible Business Lending Coalition is deeply concerned about any actions to delay or discredit implementing this long-awaited rule that was finalized in March 2023 after years of extensive input from small business owners, lenders, and other stakeholders across the small business lending industry. After 13 years, entrepreneurs should not have to wait any longer for information about how much small business lending is happening, who is (and isn’t) receiving capital, and the price of the financing that is being provided. This data is vital to spur informed innovation to reach underserved markets and drive improvements that benefit small business borrowers and lenders alike. The Responsible Business Lending Coalition will continue to monitor legal proceedings and advocate for this rule to be implemented effectively.
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About the Responsible Business Lending Coalition
The Responsible Business Lending Coalition (RBLC) is the leading cross-sector voice on small business financial protection. The coalition includes nonprofit and for-profit CDFIs, fintechs, investors, and small business advocates that share a commitment to innovation in small business lending and serious concerns about the rise of irresponsible small business lending. The coalition created the Small Business Borrowers' Bill of Rights, the first cross-sector consensus on the rights that small business owners deserve and what financing providers, brokers and lead generators can do to uphold those rights. Over 110 small business lenders, brokers and lead generators, and advocacy organizations have endorsed these standards. Members of the Responsible Business Lending Coalition include Accion Opportunity Fund, Community Investment Management, Funding Circle, LendingClub, Opportunity Finance Network, Small Business Majority, and the Aspen Institute. For more information, visit www.borrowersbillofrights.org.
The Responsible Business Lending Coalition (RBLC) is the leading cross-sector voice on small business financial protection. The coalition includes nonprofit and for-profit CDFIs, fintechs, investors, and small business advocates that share a commitment to innovation in small business lending and serious concerns about the rise of irresponsible small business lending. The coalition created the Small Business Borrowers' Bill of Rights, the first cross-sector consensus on the rights that small business owners deserve and what financing providers, brokers and lead generators can do to uphold those rights. Over 110 small business lenders, brokers and lead generators, and advocacy organizations have endorsed these standards. Members of the Responsible Business Lending Coalition include Accion Opportunity Fund, Community Investment Management, Funding Circle, LendingClub, Opportunity Finance Network, Small Business Majority, and the Aspen Institute. For more information, visit www.borrowersbillofrights.org.
