On November 15, Senators Marco Rubio (R-Fla.) and John Kennedy (R-La.) announced the Small Business Credit Protection Act – proposed legislation that would require consumer reporting agencies to inform small businesses of a nonpublic personal data breach within 30 days of the breach. If passed, the SBCPA also would prohibit credit bureaus from charging small businesses for a credit report within 180 days following a breach.
A one-page summary of the bill is available here.
Unlike “consumer” credit reports, business credit reports are not free and generally cost between $40 and $100 to view a single report from one of the three credit reporting agencies.
“The federal government must uphold the trust Americans need to fully participate in our economy. By ensuring that small businesses receive the protections they need in cases of a security breach, the Small Business Credit Protection Act will do just that,” Rubio said. “I urge my colleagues to join me in passing this bill so that we can continue to protect America’s small businesses – the cornerstone of our economy.”
At this juncture, the proposed SBCPA is only one page, as it appears Senators Kennedy and Rubio are looking for early support for their initiative. The Senate is expected to release a formal draft of the proposed legislation in the coming months.
Troutman Sanders will continue to monitor developments involving the SBCPA and provide any further updates as they are available.