With only the Senate in session this week, and most of Washington, D.C.’s attention turned toward Friday’s inauguration, CUNA will submit a letter for a hearing on improving small business input on small business regulations.
On Thursday, the Senate Homeland Security and Government Oversight subcommittee on regulatory affairs and federal management subcommittee will conduct "Improving Small Business Input on Federal Regulations: Ideas for Congress and a New Administration” at 10 a.m. (ET).
The hearing will focus on how agencies consider the impact of regulations on small businesses, and whether requirements in the Small Business Regulatory Enforcement Fairness Act (SBREFA) and other statutes are enough to address small business concerns.
“The Consumer Financial Protection Bureau (CFPB) is 1 of 3 agencies that is required to hold SBREFA panels if one of its rulemakings will have a substantial impact on a number of small entities. Many credit unions have participated in the SBREFA process in the past few years,” said Leah Dempsey, CUNA senior director of advocacy and counsel. “Credit unions participating on these panels often expend a lot of time and resources analyzing SBREFA outlines, working to determine how a potential rule could impact their credit union, and flying to D.C. to participate in the daylong panel,”
“With a few minor exceptions, they have often been disappointed that a number of CFPB’s final rules, even after SBREFA, largely treat small credit unions the same as the largest banks and nonbank providers, which harms their ability to continue to serve consumers," Dempsey added.
CUNA’s letter will outline concerns with the SBREFA process and highlight ways CFPB can improve the process.
CUNA will also highlight issues raised by the Small Business Administration’s Office of Advocacy about the bureau’s proposed short-term, small-dollar rule.
The SBA Office of Advocacy expressed a number of concerns including that the CFPB has underestimated the potential economic impact of this rulemaking on small entities and the CFPB’s proposed rule may deprive consumers of a means of addressing their financial situation.
For more information on other Senate hearings this week, see CUNA’s Removing Barriers Blog.