A Big Rule For Small Business Financing Providers: CFPB Issues Final Small Business Data Collection Rule

On March 30, 2023, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") issued its long-awaited small business lending data collection final rule ("Final Rule"). The Final Rule implements Section 1071 of the Dodd-Frank Act, which amended the Equal Credit Opportunity Act (ECOA), to direct the CFPB to require financial institutions to collect and report loan data on women-owned, minority-owned, LGBTQI+-owned, and small businesses (collectively, "Small Businesses") in connection with applications for credit. Under the Final Rule, covered financial institutions are required to disclose application data from Small Businesses and demographic information about credit applicants. The Final Rule applies to a variety of entities that engage in small business lending and meet the origination threshold.