CFPB Finalizes Rule On Small Business Lending Data Collection

The Consumer Financial Protection Bureau ("CFPB") has issued the long-awaited Small Business Lending Rule ("Final Rule"), which implements the small business lending data collection requirements set forth in section 1071 of the Dodd-Frank Act. Under the Final Rule, covered financial institutions are required to collect and report information about the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit.

A summary of the Final Rule is set forth below, including when compliance is required. The applicable compliance date will depend on the number of covered originations that a covered financial institution originated in 2022 and 2023.