{"id":2113190,"date":"2023-12-01T11:07:05","date_gmt":"2023-12-01T16:07:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-votes-to-ax-woke-small-business-lending-rule-lining-up-biden-veto\/"},"modified":"2023-12-01T11:11:43","modified_gmt":"2023-12-01T16:11:43","slug":"house-votes-to-ax-woke-small-business-lending-rule-lining-up-biden-veto","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-votes-to-ax-woke-small-business-lending-rule-lining-up-biden-veto\/","title":{"rendered":"The House votes to eliminate &#8216;woke&#8217; small business lending rule, setting up Biden veto"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhouse-votes-to-ax-woke-small-business-lending-rule-lining-up-biden-veto%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2113190&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The House Votes to Cancel Rule Collecting Data on Small Business Owners<\/h2>\n<p>The House of Representatives voted on\u200b Friday to cancel an administration \u200brule that requires \u2063banks to collect personal \u200cdata on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cuomo-to-partially-reopen-indoor-dining-in-nyc-for-valentines-day-if-positivity-rates-hold\/\" title=\"Cuomo To Partially Reopen Indoor Dining In NYC For Valentine\u2019s Day, \u2018If Positivity Rates Hold\u2019\">small business owners<\/a> when they apply for a loan. Republican critics argue that this rule is an invasion of privacy and has been labeled as &#8220;woke.&#8221;<\/p>\n<p>The\u2064 resolution passed with a vote of 221-202, with six\u2062 Democrats joining Republicans in supporting the rollback. However, President Joe Biden has stated that he would veto the measure, despite it already receiving bipartisan support in the Democratic-controlled \u200dSenate.<\/p>\n<h3>Stopping the Implementation of Dodd-Frank Act<\/h3>\n<p>This legislation aims to halt \u200cthe implementation\u200d of a section of the Dodd-Frank Act by the Consumer \u2064Financial Protection Bureau (CFPB). \u200cThe rule in question \u2063requires financial institutions to collect and \u200breport personal information to the CFPB on small businesses\u200c applying\u2064 for credit, \u200dincluding those owned by women or\u200d minorities. Republicans \u2063argue \u2064that this measure is burdensome and intrusive,\u2063 hence \u200cthe &#8220;woke&#8221; label.<\/p>\n<p>Senator John Kennedy (R-LA) led the effort to cancel the CFPB&#8217;s implementation of the rule using the Congressional Review Act, \u200cwhich allows Congress to vote down administrative rules through\u200c an expedited process.<\/p>\n<p>Republicans and some centrist Democrats believe that the CFPB&#8217;s push for more \u2064disclosures about \u200dsmall business owners, some of which\u2064 would\u200c be \u2062made public, would create unnecessary burdens for small businesses.<\/p>\n<h3>Data Collection and Veto \u2063Threat<\/h3>\n<p>The CFPB rule seeks to collect data on the race,\u200d ethnicity, gender, \u200cand minority, women, or LGBTQ+ ownership of small businesses. The \u2063White House argues that this rule provides &#8220;critical information&#8221; about the\u2064 small business financing market,\u2064 benefiting small business owners, lenders, and the public.<\/p>\n<p>However, the White House has vowed that President Biden will veto\u200b the rollback, stating that it would hinder efforts to promote transparency and accountability in small \u2063business lending. They believe \u200dit would create obstacles for mission-driven lenders and community organizations striving to address capital access gaps for minority-\u200b and women-owned businesses.<\/p>\n<h3>Privacy Concerns and Previous Republican Actions<\/h3>\n<p>The CFPB rule applies to financial institutions that have provided 100\u2064 or more \u2062small business loans in each of the past\u2063 two calendar years. A small business, within the context of this rule, \u200dis defined as a company with $5 million or less in revenue.<\/p>\n<p>During a hearing earlier this year, Senator Kennedy raised privacy\u200c concerns with CFPB \u2063Director Rohit Chopra, questioning why personal details such \u200das\u200c sexual preference are necessary when a small business owner applies for a \u2063loan.<\/p>\n<p>Republicans have previously used their Congressional Review Act authority\u200c to\u200d challenge the Biden administration&#8217;s\u200b rulemaking, resulting in presidential vetoes. One example is the cancellation of a Labor Department rule allowing retirement plan managers \u2062to consider environmental and social issues when making investments, which led to President Biden&#8217;s first \u200dveto.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more from The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> What criticisms do critics of \u2062the rule have regarding the redundancy of data collection and its impact on paperwork and bureaucracy<\/h2>\n<p><span>  Ican opponents \u200bof\u2062 the rule argue that it is a clear violation of privacy rights and unnecessarily\u2062 expands \u2062the reach\u200d of\u2063 the federal\u2063 government into the affairs of small businesses. They claim that\u200d the collection of personal \u2062data on small business owners\u200c is not relevant to determining creditworthiness and \u2064is an\u2063 unfair burden on both lenders and borrowers.<\/p>\n<p>Supporters of the rule, however, argue that it is necessary to address\u2062 the issue\u200b of \u2064financial\u200b discrimination against women and minority-owned \u2062businesses. They believe that collecting data on the \u2063race and gender of business owners \u200cwill allow\u2062 for the identification of discriminatory \u2064lending practices and\u200b the implementation of corrective measures.<\/p>\n<p>Critics of the rule also point out that the data\u200d collection requirement is redundant, as banks already collect \u200dinformation on small business \u2062borrowers as part of the \u2064normal \u2063loan application process. They argue \u200cthat the additional requirement imposed by\u200c the rule creates unnecessary paperwork and bureaucracy for both small business owners\u2062 and\u2063 financial institutions.<\/p>\n<p>The decision to \u2063cancel the rule has generated a \u200cheated debate in Congress and among industry experts. Those in favor of the cancellation argue that it is a \u2063necessary step \u2064to protect the privacy of small business owners and to\u2062 reduce the burden of unnecessary regulations on lenders.<\/p>\n<p>On the other hand, opponents of the \u200bcancellation argue \u200bthat it\u2062 undermines efforts to address discriminatory lending practices \u200cand protect\u200c the rights of women \u2064and minority-owned \u200cbusinesses. They\u2063 assert that \u2064the rule \u2063provides important data that can be used to\u200d <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-warns-financial-institutions-that-they-cant-reject-illegal-immigrants-credit-applications\/\" title=\"DOJ cautions banks against denying credit to undocumented immigrants.\">promote fair lending practices<\/a> and ensure equal access \u2064to credit \u200dfor all entrepreneurs.<\/p>\n<p>With \u200cthe House of Representatives voting \u200bto cancel the rule and President Biden threatening to veto the measure, the fate of the requirement remains\u200c uncertain. It is \u2062clear, however, that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/red-state-pharmacists-use-religious-loophole-to-deny-patients-ivermectin-doctor\/\" title=\"Red state pharmacists exploit 'religious' loophole to refuse Ivermectin to patients: Doctor\">issue raises important questions<\/a> about the balance between privacy\u200c rights and the need to address discrimination in lending practices.<\/p>\n<p>In the coming weeks, the Senate will\u200b have to decide whether to support the cancellation of the rule or uphold its implementation. The\u2063 final decision will have far-reaching implications for both \u2062small \u2062business owners and lenders, as well as for\u200b the broader debate on\u200b privacy rights and equal access to financial \u2062resources.<\/p>\n<p>Regardless of the outcome, it is crucial to continue the conversation on how to\u2064 promote fair lending practices without compromising the privacy and \u200drights\u200c of small \u200cbusiness owners. As the debate rages on, lawmakers and industry\u2063 experts must\u2062 work together to find a \u200dsolution \u2064that\u200d addresses both concerns and supports a \u200cthriving and inclusive small business ecosystem.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The House voted to scrap a rule that mandates banks to gather data on small business owners during loan applications. Republican critics argue it infringes on privacy. The resolution passed 221-202, with six Democrats supporting the rollback. President Joe Biden&#8217;s stance on this remains undisclosed<\/p>\n","protected":false},"author":1,"featured_media":2113192,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2113190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2113190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2113190"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2113190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2113192"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2113190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2113190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2113190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}