1071: Sweeping changes coming to small business lending (Infographic)
View our latest infographic to see how the Small Business Lending Rule could impact your financial institution.
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.
Section 1071 of the Dodd-Frank Actrequired the Consumer Financial Protection Bureau (CFPB) to incorporate new small business data collection requirements as part of the federal Equal Credit Opportunity Act (ECOA).
On March 30, 2023, the CFPB issued its long awaited final small business lending rule ushering in new wide‑ranging impacts on commercial small business lenders.
Compliance with the new small business lending rule will be required as early as October 1, 2024 for larger institutions, with compliance required later for smaller institutions.
Get started understanding what the new small business lending rule will require and how Finastra has your back.
