Senate Overturns CFPB Small Business Rule Despite Biden's Veto Threat

The Senate voted to overturn a Consumer Financial Protection Bureau (CFPB) rule that required lenders to report demographic data on small-business loan recipients, despite a veto threat from the White House. The rule aimed to ensure equitable distribution of loans to underrepresented borrowers, but critics argued it was intrusive and burdensome. The House still needs to act on the resolution. The CFPB finalized the rule in March, but a federal court in Texas suspended its enforcement for members of the American Bankers Association. The White House warned that overturning the rule would harm transparency and accountability in the small business financing market.