Frequently asked questions about the DFA 1071 small business lending rule
Finastra has created this FAQ document to inform you about the small business lending rule's key considerations.
LEGAL UPDATE: On May 16, 2024, the Supreme Court of the United States issued its long-awaited decision in the CFSA v. CFPB case, challenging the constitutionality of the CFPB’s funding. The Court found in favor of the CFPB (finding its funding constitutional). Preliminary injunctions issued by the Texas and Kentucky Federal district courts were framed to last until the constitutionality of CFPB funding was confirmed. With this question resolved, on May 17th the CFPB issued a notice of its intent to issue an interim final rule extending the small business data collection rule compliance deadlines. The CFPB’s interim final rule will require small business data collection under ECOA as of July 18, 2025 (Tier 1 financial institutions), January 16, 2026 (Tier 2 financial institutions), and October 18, 2026 (Tier 3 financial institutions). Voluntary data collection of all small business data is expected to be permitted 12 months prior to these required effective dates. Know more.
Learn about who must comply with the rule, significant dates of which financial institutions need to be aware, and what types of clients qualify for the 1071 rule.
