Massachusetts Legislators Propose Small Business Lending Data Collection

Legislators in Massachusetts are proposing a set of requirements designed to monitor small business lending in a manner that is similar to the CFPB.

In a set of parallel bills that mostly say the same thing (S.234, S.1986 H.2997), they call for the Division of Banks to require “the collection of small business lending data from all lenders, including online lenders, and small businesses on an annual basis.”

It also said that the regulations would include:

(1) the establishment of a central depository of the collection and analysis of small business lending data, to include, but not be limited to the following: lending and banking institutions’ average annual percent rates, default rates, and fees.

(2) procedures for the solicitation and acceptance of reports regarding small businesses’ incidents of predatory lending practices.

(3) procedures for assessing the credibility and accuracy of reports of small business lending data from lending institutions.

Although this was proposed back in February it has since shifted back into the conversation in the state. The next hearing on the bill will take place on October 19. It can be found under the category of “An Act to promote inclusive entrepreneurship and economic justice.”