Letter to CFPB on 1071 calls for an iterative, data-driven approach that protects small business owners and ensures a fair, competitive credit market

Washington, D.C. (December 15, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) regarding its proposed rulemaking on small business lending data collection under Section 1071 of the Dodd-Frank Act. In its letter, AFC urges the CFPB to pursue an iterative approach to data reporting that preserves core data elements and ensures that only those entities operating in traditional small business credit markets are captured under the rule.

“Section 1071 is a critical tool for expanding access to fair and affordable credit for small businesses and the communities that depend on them,” said Phil Goldfeder, CEO of the American Fintech Council. “Fintech lenders have driven competition, increased inclusion, and reduced barriers to capital for entrepreneurs nationwide. Consistent reporting frameworks for those engaged in traditional small business credit markets are essential to maintaining that progress, and to ensuring regulators have the visibility they need to promote a more equitable credit system.”

AFC supports several of the Bureau’s proposed adjustments, such as lowering the small business revenue threshold to $1 million and raising the institutional reporting threshold to 1,000 originations, while emphasizing the need for a more complete and product-neutral reporting structure. AFC cautions that excluding certain credit products, particularly Merchant Cash Advances and segments of agricultural lending, would create significant gaps in the dataset and undermine the fair-lending objectives of Section 1071.

“Accurate small business lending data is essential for effective oversight and fair lending,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “By taking a pragmatic, iterative approach, the Bureau will be able to ensure that it collects reliable information. In turn, this will help regulators understand lending patterns, detect disparities, and craft policies that reflect real market conditions. This approach also helps lenders refine their offerings and better support small businesses, particularly those in historically underserved communities.”

AFC also urged the Bureau to preserve flexible NAICS reporting options supported by safe-harbor protections, and to exclude short-term, no-finance-charge Buy Now, Pay Later (BNPL) products to ensure that 1071 data remains focused on traditional small business credit.

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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