H.R. 941: Small LENDER Act

The Small LENDER Act is a proposed law that aims to change how small financial institutions, like community banks and credit unions, handle data collection for small business loans. Currently, these institutions must collect and report detailed information about their small business lending activities. This bill proposes to: 1. **Extend Compliance Time**: Give these institutions three years to comply with the new data collection rules. 2. **Provide a Safe Harbor**: After the three years, offer an additional two-year period where institutions must follow the rules but won't face penalties for any mistakes. 3. **Redefine Small Businesses**: Change the definition of a small business to those with annual revenues of $1 million or less, instead of the current $5 million threshold. 4. **Raise Reporting Threshold**: Only require institutions that make at least 500 small business loans in each of the previous two years to comply with the reporting rules, up from the current threshold of 25 loans. These changes aim to reduce the regulatory burden on smaller lenders, making it easier for them to serve their communities without being overwhelmed by reporting requirements.

Supporters of the Small LENDER Act argue that it will help small financial institutions by reducing the complexity and cost of complying with data collection rules. They believe that by extending the compliance timeline and providing a penalty-free period, smaller lenders will have more time to adapt without the fear of immediate penalties. Additionally, raising the reporting threshold means that very small lenders won't be subject to the same requirements as larger institutions, allowing them to focus more on serving their local communities. This could lead to increased access to credit for small businesses in underserved areas, as community banks and credit unions play a crucial role in these markets.

Critics of the Small LENDER Act express concern that loosening data collection requirements could lead to less transparency in small business lending. They argue that comprehensive data is essential for identifying and addressing discriminatory lending practices. By raising the reporting threshold and redefining what constitutes a small business, a significant portion of lending activity might go unreported, making it harder to monitor and ensure fair lending practices. Additionally, the extended compliance timeline and safe harbor period could delay the implementation of important consumer protections, potentially leaving small business borrowers vulnerable to unfair practices for a longer period.

Based on the available data, the risk of conflicts of interest between the sponsor's donors and the bill's subject matter is low. The sponsor's top donor industries are Health Professionals and Retired individuals, which do not directly overlap with the subject matter of the Small LENDER Act. There is no evidence of financial contributions from industries directly related to the bill's subject matter. Lobbying activity in the bill's policy area is noted, but without disclosed amounts from most entities, it's difficult to assess any potential influence. The disclosed lobbying amounts total $160,000, but without knowing the specific interests of these lobbyists in relation to this bill, we cannot definitively identify a conflict of interest.

Organizations that lobbied on issues related to this bill's policy area.

Source: Senate Lobbying Disclosure Act (LDA) filings, 2026

Top industries funding J. Hill, ranked by total contributions.

Source: OpenSecrets.org (Center for Responsive Politics)