Bill · S. 2352· Senate(119-S-2352)
PROTECTED Act
- Introduced
- 7/17/2025
- Last activity
- 7/17/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Katie Britt
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill is known as the PROTECTED Act. It amends the Equal Credit Opportunity Act to change the rules for how small business loan data is collected. The bill allows financial institutions to inform applicants in writing that the Bureau of Consumer Financial Protection requires this information to be reported annually, that the response will not affect credit evaluation, and that providing the information is optional. It removes certain data requirements and prohibits financial institutions from compiling information using visual observation or any method other than direct applicant provision. The bill also states that response rates cannot be used to judge a financial institution's compliance. Finally, it creates a two-year safe harbor from enforcement and sets a delayed effective date tied to specific federal acts.
Yes· 3 of 6
Would business owners be better off under this?+4
Small business owners benefit from more transparent credit request evaluations and reduced data collection burdens.
Does this give people more control over their personal data?+4
The bill introduces new rules for how the Bureau handles the modification and deletion of data to protect privacy.
Does this make it easier to run a small business?+3
The bill aims to reduce regulatory burdens and increase transparency for small business loan applicants.
The opposite
Does this give the federal government more power?-2
The bill modifies existing requirements for how federal agencies collect data from financial institutions.
Who it would affect, and how
Potential Positive Impacts for People
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Clear Disclosures to Applicants: Under Section 2, financial institutions may inform applicants in writing that providing data is not required and will not affect their credit evaluation. This is positive because it gives applicants peace of art and clear transparency that they can decline to answer without hurting their chances of getting a loan.
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Protection Against Guesswork: Section 2 adds a provision prohibiting financial institutions from compiling and maintaining information using visual observation or any manner other than what the applicant directly provides. This benefits people by stopping lenders from guessing or making assumptions about demographic data.
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Exemption for Certain Lenders: Section 2 excludes several entities from the definition of a financial institution, such as financial institutions with less than $10,000,000,000 in assets, Farm Credit System institutions, community development financial institutions, and lenders involved in equipment and vehicle financing. This protects smaller or specialized community lenders from these specific data collection burdens.
Potential Negative Impacts for People
- Unclear Public Data Outcomes: Section 2 removes specific data categories (previously found in subparagraphs (C), (G), and (H) of subsection (e)(2)) from what is collected. While framed around privacy, removing these data points could potentially limit the government and the public's ability to track lending trends for certain groups.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+3Improves Consumer Protection+2
- Demographic And Interest Groups
- Good For Business Owners+4
- Education And Technology
- Improves Data Privacy+4
- Governance And Ideology
- Improves Government Transparency+3Improves Privacy Rights+3Increases Federal Power-2
- 7/17/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 1 Cosponsor added.
- Introduced in Senate
John BoozmanRepublican · Arkansas