Promoting Fair Lending to Small Businesses Act

“1024A. Supervision of nondepository persons offering or making small business loans

“(a) Definitions—In this section:

“(1) Covered nondepository lender—The term “covered nondepository lender” means a financial institution (as defined under section 704B(h) of the Equal Credit Opportunity Act (15 U.S.C. 1691c–2(h))) that—

“(A) is not a depository institution or credit union; and

“(B) is required to compile, maintain, and report information pursuant to section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c–2).

“(2) ECOA terms—The terms “minority-owned business”, “women-owned business”, and “small business” have the meaning given those terms, respectively, under section 704B(h) of the Equal Credit Opportunity Act (15 U.S.C. 1691c–2(h)).

“(b) Supervision

“(1) In general—The Bureau shall require reports and conduct examinations on a periodic basis of covered nondepository lenders for purposes of—

“(A) assessing compliance with the requirements of the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.);

“(B) obtaining information about the activities and compliance systems or procedures of the covered nondepository lender; and

“(C) detecting and assessing risks to minority-owned businesses, women-owned businesses, and small businesses and to markets for credit to such businesses.

“(2) Risk-based supervision program—The Bureau shall exercise its authority under paragraph (1) in a manner designed to ensure that such exercise, with respect to covered nondepository lenders, is based on the assessment by the Bureau of the risks posed to minority-owned businesses, women-owned businesses, and small businesses in the relevant product markets and geographic markets, and taking into consideration, as applicable—

“(A) the asset size of the covered nondepository lender;

“(B) the volume of transactions involving extending credit to minority-owned businesses, women-owned businesses, and small businesses in which the covered nondepository lender engages;

“(C) the risks to minority-owned businesses, women-owned businesses, and small businesses created by the provision of such credit;

“(D) the extent to which the covered nondepository lender is subject to oversight by State authorities for fair lending in the provision of such credit; and

“(E) any other factors that the Bureau determines to be relevant to a class of covered nondepository lenders.”