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Dear small biz: What are your financing needs?

 

WASHINGTON – May 10, 2017 – The U.S. Consumer Financial Protection Bureau (CFPB) launched an inquiry to identify the financing needs of small businesses, especially those owned by women and minorities.

Small businesses typically need access to credit to take advantage of growth opportunities, but the CFPB calls public information on this lending market inconsistent and incomplete. Through a "Request for Information," it hopes public feedback will help it better understand how to bridge this information gap – a task assigned to the bureau under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

"Small businesses fuel America's economic engine, create jobs and nurture communities. Yet little is known about how well the lending market serves their financing needs," says CFPB Director Richard Cordray. "This inquiry will help us learn how we can best fulfill our duty to collect and report information on small business lending."

The Request for Information is posted online, and anyone may comment.

The CFPB estimates that small businesses access about $1.4 trillion in financing. However, current information on how small businesses engage with credit markets is incomplete or dated, and it does not paint a full picture of access to financing. CFPB says that current information doesn't reflect whether there is more or less access to credit for a small business depending on type or location, to what extent small business lending is shifting from banks to alternative lenders, and whether tighter credit triggered by the Great Recession still persists.

The CFPB is requesting comments from individual businesses, consumer groups, community development organizations, bank and nonbank lenders, regulators and all other interested parties. The comment period for the public inquiry will end 60 days after the Request for Information is officially published in the Federal Register.

© 2017 Florida Realtors

 

Related Topics: Business