CFPB Finalizes Small Business Lending Data Rule

On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) released its small business lending data collection and reporting rule, required by Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Section 1071 Rule). Similar to the Home Mortgage Disclosure Act (HMDA), which requires lenders to collect and report borrower demographic data regarding certain mortgage applications and loans for each calendar year, the Section 1071 Rule requires banks and non-bank entities that make at least 100 small business loans annually to collect and report loan application, origination, and pricing information, as well as certain applicant/borrower demographic information, in a "small business lending application register." For purposes of the rule, a small business is one with no more than $5 million of gross revenues in its most recent fiscal year. The Section 1071 Rule amends Regulation B¹ to implement changes to the Equal Credit Opportunity