# Plain Language Summary: Congressional Disapproval of Small Business Lending Rule

Congress is trying to block a new rule created by the Consumer Financial Protection Bureau (CFPB) that deals with how banks and lenders treat small business owners when they apply for loans. This is a special type of vote called a "disapproval resolution," which is Congress's way of saying "we don't want this rule to exist" and trying to overturn it.

The rule in question relates to the Equal Credit Opportunity Act, which is a law that's supposed to prevent discrimination in lending. The CFPB's new rule would apply these anti-discrimination protections more specifically to small business lending. If this disapproval resolution passes, it would essentially kill the rule and prevent it from going into effect. This means small business owners might not have the same protections against discrimination when applying for business loans that the CFPB wanted to give them.

Who this affects depends on which side wins: If Congress successfully disapproves the rule, small business owners lose a layer of protection against potentially discriminatory lending practices. If the rule survives, small business owners gain clearer protections, but lenders and banks would have to follow stricter guidelines when evaluating small business loan applications. The outcome also matters for the CFPB's authority—it's essentially a test of whether Congress agrees with how aggressively the agency is using its power to regulate lending practices.

A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to "Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)".

Kennedy, John

 <p>This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau titled <i>Small Business Lending under the Equal Credit Opportunity Act (Regulation B)</i> and published on May 31, 2023. The rule requires financial institutions to collect and report to the bureau credit application data for small businesses. On July 31, 2023, the U.S. District Court for the Southern District of Texas ordered the bureau not to implement or enforce the rule until a related pending case is resolved.</p>