On Apr. 30, 2025, CFPB reported it will not prioritize enforcement actions with regard to entities currently outside stay imposed under Texas Bankers Association v. CFPB.
To focus resources on supporting taxpayers, servicemen, veterans, small businesses.
Even absent resource constraints, CFPB would deprioritize rule because of unfairness of enforcing it against entities not protected by the court’s stay but similarly situated.
Noted that the Bureau is looking forward to resolving the status of this regulation and ensuring fair, consistent treatment for all entities impacted by the regulation.
In May 2025, CFPB withdrew interpretive rules, statements, opinions, see #254287.
In May 2025, US ACU blog on small business lending data collection rule, see #255379
In Apr. 2025, CFPB reported plan for new Section 1071 rulemaking, see #256248.
On Sep. 1, CFPB proposed small business lending data collection rule.
CFPB requested comment on a proposed rule on small business lending data collection.
Proposed to require covered financial institutions to collect and report to CFPB data on credit applications for small businesses, including those owned by women/minorities.
Aims to provide better access by increasing transparency in the lending marketplace.
Follows 2020 outline of small business lending proposal in consideration, see #86262.
Small Business Lending Data Collection Proposal
Bureau proposed to amend Regulation B, to implement changes to the equal credit opportunity act (ECOA), 12 CFR 1002; mandated by DFA S.1071, in 15 USC 1691c-2.
Added a new subpart B to Regulation B to implement the requirements under S.1071.
Required certain lenders to disclose information on their lending to small businesses.
Proposed that data collection requirements apply to any application to an FI for credit by a small business, not to women- and minority-owned businesses that are not small.
Applicability and Coverage
For covered financial institutions, origination threshold at least 25 credit transactions.
Financial institutions engaging in small lending that meet threshold in two prior years.
Not covered financial institutions can voluntarily participate in certain circumstances.
Defined small business and small business concern as set out under SBA regulations.
However, also looking at whether business had $5mn/less gross revenue in prior year.
Outlined covered credit transactions, not including certain extension and renewals.
Collecting and Reporting
Provided data points institutions would be required to report on covered applications.
Included unique identifier, application data and method, recipient, action taken, date.
Data point on denial reasons; amount originated or approved, and pricing information.
Information specific to credit being applied for; business-related data; demographics.
Availability and Publication
Institutions would collect data on calendar-year basis, report by Jun. 1 following year.
Made available to public on annual basis, modified for privacy using a balancing test.
Statement required on each institutions website that data available on CFPB website.
Data Access Limits
Firewall provision to shield certain demographic data from underwriters other persons.
Prohibited employee/officer involved in making determination concerning applications from accessing an applicant's response on ethnicity, race, and sex of business owners.
Not applicable if not feasible to limit this access; provided related notice obligations.
Recordkeeping, Effective and Compliance Dates
Addressed recordkeeping requirements; requirement to retain evidence of compliance.
Included retaining copy of small business lending application registers at least 3 years.
Responses on S,1071 inquiries, ethnicity, race, sex must be separate from application.
Enforcement of violations, bona fide errors, and safe harbors included in the proposal.
Final rule proposed to become effective in 90 days after publication in federal register.
Yet, compliance with final rule not required until 18 months after the publication.
Director Uejio Remarks
Stated proposal important step for fairer, transparent small business lending market.
Highlighted prior actions; noted similarities to home mortgage disclosure act (HMDA).
Reported new online feature for small businesses share stories on applying for credit.
To help inform CFPB’s work to protect small businesses, for fairer lending marketplace.
Senate Brown Remarks
Senate member Brown issued statement commending CFPB proposal to improve data.
Stated small businesses drive growth in communities, but face credit and loan barriers. Brown called the proposal an important step in addressing longstanding gaps in data.
Effectiveness
Comments must be submitted in 90 days after pending publication in federal register.
Oct. 2021 Fed Reg Publication
On Oct. 08, 2021, CFPB published proposed rule on data collection in federal register.
Comments on proposed rule must be received on or before Jan. 6, 2022.
Dec. 2021 Fed Reg Correction
On Dec. 13, 2021, CFPB published corrections to data collection in federal register.
Corrected footnote references; corrected spelling in footnote, appendix H to part 1002.
On Jan. 13, 2021, Senate sent a letter urging for the final rule be published, #126464.
Mar. 2023 CFPB Final Rule
On Mar. 30, 2023, CFPB issued final rule, effective 90 days afterfed reg publication.
Loan officers not required to make visual/surname determinations of race/ethnicity.
Reportable loans per HMDA do not need reported under small business lending rule.
Facilitated industry-driven solutions on data collection; intend supplementary proposal to allow additional implementation to small lenders meeting community needs.
Covered financial institutions must comply with the final rule beginning Oct. 1, 2024, Apr. 1, 2025, or Jan. 1, 2026, per tiered compliance schedule set forth in 1002.114(b).
CFPB also issued a report on supplemental estimation methodology for institutional coverage and market-level cost estimates in the small business lending rulemaking.
Also, issued report on user testing for sample data collection form for the final rule.
Director Chopra reported how rule will ensure lenders provide fair access to credit.
House FSC chair McHenry slammed rule, called it disastrous, an assault on small businesses, with overly burdensome reporting requirements on smaller lenders.
McHenry said the FSC will explore all options to hold CFPB accountable for harmful rulemaking, including Congressional review act, to ensure it does not take effect.
On May 18, 2023, FCrA issued information memo notifying that CFPB issued the small business lending final rule; compliance by Oct. 1, 2024, Apr. 1, 2025 or Jan. 1, 2026.
Date depends on number of covered credit transactions made to small businesses.
Effective date of the rule will be 90 days after it is published in the federal register.
May 31, 2023 CFPB Federal Register
On May 31, 2023, CFPB published final rule in federal register, effective Aug. 29, 2023
May 31, 2023 CFPB Policy Guidance
On May 31, 2023, CFPB published guidance concurrently with rule in federal register.
Applicable Aug. 29, 2023; informed covered institutions of intended focus re new rule.
CFPB supervisory and enforcement activities will focus on ensuring covered lenders do not discourage small business loan applicants from providing responsive data.
Which includes responses to lenders' ECOA-mandated demographic data requests.
Jul. 2023 Lawsuit Rule Implementation Pause
On Jul. 31, 2023, Lawsuit reported on injunction that ordered the CFBP not to enforce rule against Texas Banking Association and American Bankers Association members.
Members do not have to comply with rulemaking until the Supreme Court resolves a separate case involving the constitutionality of the CFPB’s funding, see #173185.
Document dated Jul. 31, 2023, was added on Aug. 23, 2023, due to editorial backfill.
May 2024 CFPB Compliance Dates
On May 17, 2024, CFPB reported, in light of court orders in ongoing litigation, it plans to issue interim final rule to extend compliance dates of small business loan rule.
Tier 1 institutions (highest volume), extend to Jul. 18, 2025, first filing Jun. 1, 2026.
Tier two to Jan. 16, 2026, first filing Jun. 1, 2027; tier 3 Oct. 18, 2026, Jun. 1 2025.
Document dated May. 17, 2024, was received on Jun. 13 due to a fixed feed.
In Sep. 2023, CFPB published updated small business lending rule FAQs, #184813.
In Dec. 2023, House reported on a joint resolution to nullify the final rule, #193496.
In Jun. 2024, CFPB extended compliance dates re business lending rule, #217121.
In Apr. 2025, US ACU discussed CFPB small business lending collection, see #249766.
Apr. 2025 CFPB Enforcement of Rule
On Apr. 30, 2025, CFPB reported it will not prioritize enforcement actions with regard to entities currently outside stay imposed under Texas Bankers Association v. CFPB.
To focus resources on supporting taxpayers, servicemen, veterans, small businesses.
Even absent resource constraints, CFPB would deprioritize rule because of unfairness of enforcing it against entities not protected by the court’s stay but similarly situated.
Noted that the Bureau is looking forward to resolving the status of this regulation and ensuring fair, consistent treatment for all entities impacted by the regulation.
In May 2025, CFPB withdrew interpretive rules, statements, opinions, see #254287.
In May 2025, US ACU blog on small business lending data collection rule, see #255379
In Apr. 2025, CFPB reported plan for new Section 1071 rulemaking, see #256248.
