Finastra SBDC Solution FAQ
Learn about Finastra's approach to compliance with the SBDC rule. Available within the Compliance Reporter solution, the SBDC module was designed with flexibility in mind.
LEGAL UPDATE: On March 4, 2025, the CFPB announced its intention to reissue the ECOA small business lending (“1071”) rule. Existing effective dates are expected to be paused until such revised rule is issued. A revised rule is still expected to include statutorily required elements from Section 1071 of the Dodd-Frank Act including the requirement to collect mandated data including demographic information, the requirement to firewall demographic information and to report data annually to the CFPB. Finastra will continue to monitor rulemaking activity by the CFPB and will provide updates.
Regulation B requires that collection of applicant demographic information occur early in the application process before a credit decision is made on the application. For many commercial lenders, this occurs before transaction information is entered in a loan origination system (LOS). The SBDC module was designed with flexibility in mind, providing processors or loan officers with a simplified data collection screen where they can enter early application data in a cloud-native stand-alone solution.
