President Trump continues to put America first by making it easier for small businesses to access lending without going through discriminatory processes.
Breitbart reported that the Consumer Financial Protection Bureau (CFPB) has finalized a rule that scraps diversity, equity, and inclusion (DEI) requirements. In a statement to Breitbart, Acting CFPB Director Russ Vought said, “This is a long-awaited win for both borrowers and small businesses. Annual savings from replacing the Biden-Harris rule will exceed an estimated $166 million annually,” and added, “These reforms not only make borrowing more affordable for America’s small businesses, including our farmers, but minimize burdens on those needing quick access to credit without requiring them to answer unnecessary and invasive DEI questions introduced by the Biden-Harris-Chopra Administration.”
The Trump administration has replaced the Section 1071 rule, which had adopted discretionary data points during the Biden administration. According to President Trump’s administration, the outdated rule was too invasive, and the American Bankers Association (ABA) agreed that the prior rule discouraged lending to small businesses. The new rule will revert to the regulations outlined in the Dodd-Frank banking law.
According to Breitbart, this new rule will remove denial reasons, the number of workers, and LGBTQI+-owned business status. Disaggregated race and ethnicity categories have been eliminated. The new rules will also limit the types of transactions subject to reporting, focusing on data collection for lending products such as loans, lines of credit, and credit cards used by small businesses.
The overturning of the new rule was first proposed in November last year and backed by Vought. He strongly believed that the old rule encouraged forms of discrimination. The Hill reported what Vought wrote in a January Wall Street Journal op-ed shortly after President Trump signed an executive order banning diversity, equity, and inclusion from the federal government agencies.
“One hallmark of the second Trump administration has been the eradication of discriminatory race-based policies that have permeated every aspect of government under the banner of ‘diversity, equity, and inclusion.’ The administration of fair-lending laws is no exception,” Vought had written.
Now, months later, the burdensome regulations have been overturned as President Trump follows through on campaign promises of putting Americans first.
