Summary of HR 941 - Small LENDER Act

Overview

The Small LENDER Act, formally known as the Small Lenders Exempt from New Data and Excessive Reporting Act, was introduced in the House of Representatives on February 4, 2025. The bill aims to alleviate regulatory burdens on small lenders by exempting them from certain data reporting requirements.

Purpose and Intent

The primary intent of the Small LENDER Act is to support small lending institutions by reducing the regulatory compliance costs associated with excessive data reporting. By doing so, the bill seeks to promote lending activities among smaller financial entities, thereby enhancing access to credit for consumers and small businesses.

Key Provisions

While the full text of the bill has not been detailed in the provided information, the following key provisions can be inferred based on the title and intent:

• Exemption from Reporting Requirements: The bill proposes to exempt small lenders from new data collection and reporting mandates that may be imposed by federal regulations.

• Support for Small Lenders: By reducing the compliance burden, the bill aims to enable small lenders to focus more on lending rather than on administrative tasks.

Affected Parties

The Small LENDER Act would primarily affect:

• Small Lenders: Financial institutions classified as small lenders would benefit from reduced regulatory burdens, allowing them to operate more efficiently.

• Consumers and Small Businesses: Increased lending capacity from small lenders could enhance access to credit for consumers and small businesses, potentially stimulating economic growth.

Legislative Process

• Introduced: The bill was introduced in the House on February 4, 2025.
• Referred to Committee: Following its introduction, the bill was referred to the House Committee on Financial Services for further consideration.

Sponsors

The bill is sponsored by a bipartisan group of legislators, including:

• Primary Sponsor: J. French Hill
• Cosponsors:
  • Ann Wagner
  • Zachary Nunn
  • Mike Haridopolos
  • Tim Moore
  • Ryan Mackenzie
  • Ashley Hinson
  • Steve Womack
  • Trent Kelly
  • Bill Huizenga
  • Daniel Meuser
  • Roger Williams

Conclusion

The Small LENDER Act represents an effort to streamline regulatory requirements for small lenders, potentially fostering a more favorable lending environment. As the bill progresses through the legislative process, its implications for small financial institutions and their customers will be closely monitored.