Bills · S 2352
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2352Finance and Financial Sector
PROTECTED Act
INTRO JUL 17· LAST ACTION JUL 17
READING
4MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it shifts the balance between collecting data to prevent discrimination in lending and protecting the privacy of small business owners. Currently, the Equal Credit Opportunity Act aims to ensure fair access to credit by requiring data collection that helps identify patterns of discrimination. If this bill passes, less data might be collected, or it might be harder to get comprehensive data if applicants frequently choose not to provide it.
Voters should care because this change could either enhance the privacy of small business owners and potentially reduce regulatory burdens on lenders, or it could make it more difficult for regulators and the public to spot and address unfair lending practices that disproportionately affect certain groups. If it doesn't become law, the existing data collection requirements for small business loans, including the types of data collected and the methods, would remain in place as specified by the Bureau of Consumer Financial Protection's current rules.
KEY PROVISIONS
5AI-extractedPROVISION 01
Allows financial institutions to inform small business loan applicants in writing that certain data collection is government-required but optional for the applicant and won't affect their loan decision.
This clarifies applicant rights regarding sensitive information, potentially increasing privacy.
PROVISION 02
Removes specific data points that financial institutions are currently required to collect, such as those related to the applicant's status as a veteran, race, sex, or ethnicity.
This directly reduces the amount of personal information gathered from small businesses, potentially streamlining the process and enhancing privacy.
PROVISION 03
Prohibits financial institutions from gathering required information by visual observation or any other method not directly provided by the applicant.
This ensures data accuracy and protects applicant privacy by requiring explicit consent for data submission.
PROVISION 04
Defines "financial institution" as those with over $10 billion in assets that originated at least 2,500 small business loans annually, excluding Farm Credit System institutions, community development financial institutions, and equipment/vehicle financers. It defines "small business" as having under $1 million in annual revenue.
This clarifies exactly which lenders and businesses are subject to or exempt from these new rules, narrowing the scope of the bill.
PROVISION 05
Establishes a "safe harbor" period where the Bureau of Consumer Financial Protection (BCFP) cannot enforce compliance for two years after the new requirements take effect, and delays the effective date until three years after the BCFP completes specific cost-benefit and paperwork analyses.
This provides a lengthy period before full implementation and enforcement, giving institutions more time to adapt but delaying the availability of new data.
SPONSORSHIP
1 + 1
R· Alabama
YRS IN OFFICE
3
BILLS LED
30
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 1 IND 0
ACTION TIMELINE
2 EVENTSJUL 17
Introduced in Senate
JUL 17
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
BILL INFO
TypeSenate Bill
NumberS 2352
Congress119th
StatusIn Committee
IntroducedJul 17, 2025
Last actionJul 17, 2025
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED JUL 17, 2025
Senate BillS 2352Finance and Financial Sector
PROTECTED Act
INTRODUCED JUL 17, 2025· LAST ACTION JUL 17, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
1
COMPLEXITY
Moderate
