The Consumer Financial Protection Bureau proposed a rule Wednesday to raise transparency around loans for small businesses.
If finalized, the federal agency’s rule would require lenders to collect and report more data about credit applications from small businesses, including demographic and pricing data and reasons for which lenders deny a loan.
The rule would help regulators learn how entrepreneurs fare when trying to access financing and what barriers may prevent them from doing so, according to Dave Uejio, the CFPB’s acting director.