Opportunity Fund CEO Tells CFPB: Section 1071 of the Dodd-Frank Act Should Be Implemented Immediately

Luz Urrutia, CEO of Opportunity Fund, spoke at the Consumer Financial Protection Bureau Symposium: Section 1071 of the Dodd-Frank Act on November 6 in Washington, D.C. where she discussed the current state and future outlook of the small business lending marketplace and the urgent need for the CFPB to begin collecting data from commercial lenders in order understand the scope of predatory lending affecting small businesses.

Section 1071 of the Dodd-Frank Act requires the CFPB to collect data in certain circumstances involving credit applications made by women- or minority-owned businesses and small businesses. However, in the 10 years since the passage of Dodd-Frank, the CFPB has failed to begin the process of writing regulations to do so. We have called on the CFPB to begin collecting data from small business lenders before, during, and even after Luz’s service on the CFPB Consumer Advisory Board.

During her remarks, Luz argued that, “We cannot ignore the cost of small businesses not getting access to the capital they need that is responsible and affordable. They’re bearing a lot of this burden, and we’ve seen firsthand what happens when business don’t get the capital they need.”

At Opportunity Fund, we see firsthand both the meaningful contributions that these business owners make to their local communities and the economy, as well as the challenges they face in accessing responsible and affordable capital in an evolving marketplace. Thorough data collection of small business financing can benefit all stakeholders—industry, regulators and, ultimately, American small business owners.

You can read Luz’s written testimony here and watch her remarks below.

For questions regarding Section 1071, please contact Gilberto Soria Mendoza at gmendoza@opportunityfund.org.