Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to "Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)".
If enacted, HJR85 would effectively eliminate the recipient rule's enforcement, thereby impacting how small business lending is regulated. The rule in question, which was designed to enhance the regulations surrounding small business lending practices to promote equality and access, would no longer apply. This shift may significantly alter the landscape of lending for small businesses, particularly affecting those that previously benefited from improved oversight aimed at preventing discrimination and ensuring fair access to credit.
HJR85, titled 'Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)', seeks to nullify a specific rule from the Bureau of Consumer Financial Protection. The resolution reflects a legislative effort to reverse regulatory guidance that potentially affects small business lending under established federal law. The imposition of such regulations is seen by some legislators as an overreach, which necessitated this resolution to restore perceived legal order.
The primary points of contention surrounding HJR85 revolve around its implications for regulatory oversight of financial institutions and the ongoing debate about the balance between regulation and economic growth. Proponents argue that the resolution would alleviate burdens on lenders, fostering a robust business environment free from overregulation. In contrast, opponents view the action as undermining essential protections intended to ensure equal opportunities for all small businesses in the lending market, highlighting the potential risks of discrimination and exclusion if equality-focused regulations are dismantled.