US Agencies Revoke Biden-Era Special Credit Guidance

Special purpose credit programs, or SPCPs, are designed to expand access to financing for groups that may face credit disadvantages. The Biden administration issued guidance encouraging lenders to structure such programs within the Equal Credit Opportunity Act, enacted in 1974, and its implementing rule, Regulation B. The policy mattered because it shaped how banks and other for-profit creditors could consider disparities when setting eligibility and underwriting standards.

The Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation and other federal agencies have withdrawn the Biden-era guidance, saying federal law does not authorize broad remedial measures without specific instances of discrimination. Creditors must still comply with the Equal Credit Opportunity Act and Regulation B. No transaction amount was involved, but the reversal is expected to directly affect lending policies, compliance reviews and the design of targeted credit programs at financial institutions.