Bill advances that would require lenders to report LGBTQ business data

WASHINGTON — The House has adopted legislation that would expand banks’ reporting of credit application data to include information about LGBTQ-owned businesses.

The LGBTQ Business Equal Credit Enforcement and Investment Act passed the House 252-176 on Thursday. The legislation would require financial institutions to report credit application data relating to LGBTQ-owned businesses to the Consumer Financial Protection Bureau for the purposes of enforcing fair lending laws.

The bill expands upon the small-business loan data that the Equal Credit Opportunity Act already requires banks to report to the CFPB on women-owned and minority-owned businesses to include LGBTQ-owned business data.

“This bill takes necessary action to help ensure that LGBTQ-owned businesses are treated fairly by financial institutions and protected against lending discrimination,” said House Financial Services Committee Chairwoman Maxine Waters, D-Calif.

All of the chamber’s Democrats were joined by 33 Republicans in support of the legislation, including Rep. Patrick McHenry, R-N.C., the top Republican on the House Financial Services Committee.