CFPB Finalizes Slimmed-Down Section 1071 Small Business Lending Rule

On May 1, the CFPB finalized a substantially revised Section 1071 rule, which implements the small business lending data collection and reporting requirements under the Equal Credit Opportunity Act (ECOA) and Regulation B, as established by Section 1071 of the Dodd-Frank Act. The revised rule will become effective 60 days after publication in the Federal Register, with a compliance date of January 1, 2028.The CFPB’s revised rule significantly narrows the scope of covered institutions, covered credit products, and required data collection compared to the CFPB’s 2023 rule, which the Bureau has characterized as abandoning the prior “maximalist” approach in favor of a long-term, incremental model.