It is essential that our regulators prioritize enhancing transparency and accountability for the small business ecosystem. The U.S. Impact Investing Alliance applauds President Biden’s veto to protect significant strides made toward this goal by the Consumer Financial Protection Bureau (CFPB) earlier this year.

The President’s veto rejects a Congressional Review Act Resolution that would have nullified the long-awaited implementation of a Dodd-Frank provision requiring small business lenders to collect demographic information about their clients and applicants. The CFPB’s new regulations will help ensure that financial institutions are serving small businesses fairly, which is essential for building a more equitable economy in which wealth building opportunities are available to all.

The Alliance has long supported a strengthened and modernized Community Reinvestment Act (CRA), which requires banks to lend and invest in the communities where they operate. We encourage policymakers and regulators to consider how to leverage this forthcoming data from the CFPB to more effectively enforce the CRA and shed light on when banks are not adequately meeting the needs of their communities.

As we head into the new year, we look forward to our continued work alongside field partners to catalyze private sector action and public policy solutions for a more equitable economic system.