The Biden administration’s latest push for its rule to implement Dodd Frank Section 1071 has been met with fierce opposition from Republicans. The Consumer Financial Protection Bureau’s (CFPB) final rule requires covered financial institutions to gather data on small business owners when they apply for a loan. Republicans argue that this is just another example of government overreach and does nothing to evaluate the strength or potential of applicants.
Senator John Kennedy, a member of the Senate Banking Committee, took director Rohit Chopra to task during a hearing on the matter. He pointed out that the rule would require banks to collect and report information on the sexual preference of borrowers, which he deemed none of the government’s business. Why does the CFPB need to know what a small business owner does in their bedroom? This is yet another example of the Biden administration imposing excessive regulations on hardworking Americans.
In response to this overreach, Kennedy has introduced several measures, including a Congressional Review Act resolution of disapproval, the Transparency in CFPB Cost-Benefit Analysis Act, and the Small LENDER Act. The latter would block the CFPB from requiring community banks and lenders to collect and report social data from borrowers, such as their race, gender, and ethnicity. Republicans believe that this is an unwarranted invasion of privacy and will do nothing to promote genuine equality.
It is clear that the Biden administration is more interested in virtue signaling than in promoting economic growth and opportunity. By imposing excessive regulations on small businesses and community banks, they are stifling innovation and entrepreneurship. Republicans believe that the best way to spur economic growth is to get the government out of the way and let businesses thrive on their own. We need less regulation, not more, if we are to return to the prosperity that made America great.
In conclusion, the Biden administration’s push for its rule to implement Dodd Frank Section 1071 is just another example of governmental overreach. It is unnecessary, invasive, and does nothing to evaluate the strength or potential of applicants. Republicans are committed to fighting back against this kind of excessive regulation and promoting the growth and prosperity of American businesses.
