CFPB says it will not prioritize enforcement of small-business lending rule for some entities
The CFPB said it will not prioritize enforcement or supervision under its small-business lending rule for entities outside a court stay in Texas Bankers Association v. CFPB.
The Consumer Financial Protection Bureau said April 30, 2025, that it will not prioritize enforcement or supervision actions under its small-business lending rule for entities not covered by a court stay in Texas Bankers Association v. CFPB.
The regulation, Small Business Lending Under the Equal Credit Opportunity Act (Regulation B), implements Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, according to the CFPB. The rule is identified as 88 Fed. Reg. 35,150, dated May 31, 2023.
Why it matters
The announcement affects entities covered by the regulation but not protected by the stay imposed in Texas Bankers Association v. CFPB, No. 24-40705 (CA5). The bureau said it does not plan to make enforcement or supervision of those entities a priority while the status of the regulation remains unresolved.
The CFPB said it will keep its enforcement and supervision resources focused on pressing threats to consumers, with particular attention to servicemen and veterans.
Key facts
The CFPB said the policy applies to entities that are currently outside the court stay. The bureau did not, in the announcement, list specific companies or institutions covered by the deprioritization statement.
The bureau also said the decision is intended to support American taxpayers, servicemen, veterans and small businesses. Its statement tied the decision to resource priorities and to what it described as fair treatment among similarly situated entities.
Background
The regulation at issue is part of Regulation B under the Equal Credit Opportunity Act. According to the CFPB, it implements Section 1071 of the Dodd-Frank Act.
The bureau’s announcement refers to the court stay in Texas Bankers Association v. CFPB. It said some entities are protected by that stay, while others that are similarly situated are not.
What the bureau said
The CFPB said that, even without resource constraints, it would deprioritize enforcement of the rule against entities outside the stay. The bureau said enforcing the rule against those entities would be unfair if they are similarly situated to parties that are protected by the court’s stay.
The bureau said it looks forward to resolving the status of the regulation and ensuring fair, consistent treatment for all entities affected by it.
What happens next
The CFPB did not announce a final resolution of the regulation’s status. Its April 30 statement leaves the rule’s broader status tied to the ongoing matter cited by the bureau and to any further action on fair and consistent treatment for affected entities.
Sources
Editorial note: This article was prepared with AI assistance and requires editorial review before publication.
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