The PROTECTED Act is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Banking, Housing, and Urban Affairs for review. No further actions are scheduled at this time.
Legislative Progress
Senate
House
President
Law
Unlikely to pass
This bill faces a difficult path because it reduces the power of the consumer protection bureau, which is a major point of disagreement between the two parties in the Senate.
Key Points
This bill changes how banks collect personal information from small business owners when they apply for loans. It requires banks to tell applicants in writing that providing details like race or gender is optional and will not affect their chances of getting the loan.
The policy stops banks from guessing an applicant's personal information through visual observation if the applicant chooses not to provide it. It also removes several specific data points that the government currently requires banks to report.
Many smaller lenders would be exempt from these reporting rules entirely. The new requirements would only apply to banks with more than $10 billion in assets that make at least 2,500 small business loans every year.
The bill creates a two-year safe harbor period where the government cannot punish banks for not following the rules. The new system would not start until three years after the government finishes a detailed study on the costs and paperwork involved.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
2 milestones2 actions
Jul 17, 2025Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Jul 17, 2025
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes, news coverage, or related bills recorded for this bill yet.
Source Information
Document Type
Congressional Bill
Official Title
PROTECTED Act
Bill NumberS 2352
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.
