CFPB fair lending: small business loans under review

Due to concerns that the credit needs of minority and women-owned small businesses are not being met, the Consumer Financial Protection Bureau (CFPB) has prioritized small business lending as an area of focus for fair lending supervision this year. The CFPB’s fair lending examinations evaluate whether lenders exhibit patterns of discrimination based on a set of prohibited factors, such as race, ethnicity, or gender. 

On September 14th, the CFPB closed a Request for Information which was issued to help it better understand the small business lending market and explore opportunities for rulemaking. However, our experience indicates that the CFPB is not waiting on rulemaking and that fair lending supervisory reviews will become more frequent. As a result, lenders should review and enhance their small business fair lending practices and programs ahead of potential examinations.

This Regulatory Brief describes the CFPB’s expectations for small business fair lending and recommendations for lenders to manage compliance risks ahead of potential examinations.

Regulatory brief

A publication of PwC's financial services regulatory practice

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Julien Courbe
Financial Services Advisory Leader, PwC US
Tel: +1 (646) 471 4771

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