National CAPACD Condemns Passage of House Resolution Disapproving CFPB’s 1071 Rule
[Washington, DC] — The National Coalition for Asian Pacific American Community Development (National CAPACD) strongly condemns the recent passage of [SJ.Res.32], a resolution to rescind the Consumer Financial Protection Bureau’s (CFPB) recently finalized small business lending data rule known as Section 1071.
The CFPB’s 1071 rule represents a critical step towards addressing long-standing disparities in small business lending, providing essential data collection to shed light on the lending practices impacting Asian American, Native Hawaiian, and Pacific Islander (AA and NHPI)-owned businesses and other communities of color. This rule is a key component in our collective effort to promote economic equity and fair access to small business capital.
The House’s passage of this resolution is a disheartening setback in the pursuit of transparency and equity within our financial system. By rescinding the 1071 rule, we risk perpetuating the existing disparities faced by AA and NHPI entrepreneurs and other minority business owners. To foster an environment where all entrepreneurs can thrive, collecting accurate and comprehensive disaggregated data to identify and rectify systemic issues in small business lending is essential.
“As an advocacy organization committed to empowering AA and NHPI communities, we are deeply disappointed by the passage of this resolution,” states National CAPACD CEO Seema Agnani. “Access to fair lending practices is essential for the economic well-being of our communities. The 1071 rule is a crucial tool to ensure transparency and accountability in our business lending market, and we will continue to advocate for policies that promote financial inclusion and equity.”
National CAPACD calls on President Biden to veto this resolution and urges members of Congress who voted for this legislation to reconsider their stance and support the future of minority-owned businesses. We urge a collective commitment to fostering an inclusive financial landscape that supports the growth and success of AA and NHPI entrepreneurs, which ultimately benefits all communities.
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