PROTECTED Act
Small Business Loan Data Privacy and Reporting Changes
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
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
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.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
PROTECTED Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.