119-s2352

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2352 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2352

 To amend the Equal Credit Opportunity Act to modify the requirements 
 associated with small business loan data collection, and for other 
 purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 17, 2025

Mrs. Britt (for herself and Mr. Boozman) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
 and Urban Affairs

_______________________________________________________________________

 A BILL

 To amend the Equal Credit Opportunity Act to modify the requirements 
 associated with small business loan data collection, and for other 
 purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Preventing Regulatory Overreach to 
Empower Communities to Thrive and Ensure Data Privacy Act'' or the 
``PROTECTED Act''.

SEC. 2. SMALL BUSINESS LOAN DATA COLLECTION.

 

Section 704B of the Equal Credit Opportunity Act (15 U.S.C. 1691c-
2) is amended--

    (1) in subsection
            (c) --
        (A) by striking ``Any applicant'' and inserting the 
 following:
 ``

    (1) In general.--Any applicant''; and
        (B) by striking the period at the end and inserting 
 the following:
 ``, and the financial institution may, when requesting such 
 information, inform the applicant in writing that--
 ``
        (A) the Bureau of Consumer Financial Protection 
 requires the financial institution to ask, collect, and 
 report such information to the Federal Government 
 annually pursuant to this section;
 ``
        (B) the applicant's response will not affect the 
 financial institution's evaluation of the request for 
 credit; and
 ``
            (C) the applicant is not required to provide such 
 information.''; and

    (2) in subsection

    (e) --
        (A) in paragraph

    (2) --
            (i) by striking subparagraphs
            (C) ,
        (G) , and
        (H) ; and
            (ii) by redesignating subparagraphs
            (D) ,
        (E) , and
        (F) as subparagraphs
            (C) ,
            (D) , and
        (E) , respectively;
        (B) in paragraph

    (4) --
            (i) by striking ``The'' and inserting the 
 following:
 ``
        (A) In general.--The''; and
            (ii) by adding at the end the following:
 ``
        (B) Rulemaking.--The Bureau shall, before 
 deleting or modifying data under this paragraph, and 
 after notice and an opportunity for comment, issue 
 rules that include a description of what modifications 
 and deletions the Bureau intends to make to the data 
 and how such modifications and deletions will advance a 
 privacy interest.''; and
            (C) by adding at the end the following:
 ``

    (5) Prohibition on information not reported by an 
 applicant.--A financial institution may not compile and 
 maintain information described under subsection

    (b) that was 
 determined by the financial institution using visual 
 observation or any other manner other than being provided by an 
 applicant.
 ``

    (6) Treatment of response rate.--The percentage of 
 applicants providing a financial institution with the 
 information described under subsection

    (b) may not be used as a 
 factor in determining whether a financial institution is in 
 compliance with the requirements under this subsection.
 ``

    (7) Safe harbor.--The Bureau may not enforce compliance 
 with the requirements of this subsection during the 2-year 
 period beginning on the effective date described in paragraph

    (8) .
 ``

    (8) Effective date.--This subsection shall take effect on 
 the date that is 3 years after the date on which the Bureau 
 completes the cost-benefit analysis under chapter 6 of part I 
 of title 5, United States Code (commonly referred to as the 
 `Regulatory Flexibility Act') and subchapter I of chapter 35 of 
 title 44, United States Code (commonly referred to as the 
 `Paperwork Reduction Act')).
 ``

    (9) === Definitions. ===
-In this subsection:
 ``
        (A) Financial institution.--The term `financial 
 institution'--
 ``
            (i) means--
 ``
            (I) any partnership, company, 
 corporation, association (incorporated 
 or unincorporated), trust, estate, 
 cooperative organization, or other 
 entity that--
 ``

    (aa) engages in any 
 financial activity; and
 ``

    (bb) in each of the 
 preceding 2 calendar years, 
 originated not less than 2,500 
 credit transactions for small 
 businesses; and
 ``
            (ii) does not include--
 ``
            (I) any financial institution 
 with less than $10,000,000,000 in 
 assets;
 ``
            (II) a Farm Credit System 
 institution chartered under and subject 
 to the provisions of the Farm Credit 
 Act of 1971 (12 U.S.C. 2001 et seq.);
 ``
            (III) community development 
 financial institutions, as defined in 
 

section 103 of the Community 
 Development Banking and Financial 
 Institutions Act of 1994 (12 U.S.C. 
 4702); or
 ``
            (IV) lenders involved in 
 equipment and vehicle financing.
 ``
        (B) Small business.--The term `small business' 
 means an entity with gross annual revenues of not more 
 than $1,000,000 in the preceding fiscal year.''.
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