CFPB Issues Final Rule for Section 1071
June 5, 2024
Source: SFNet
On May 17, 2024, the Consumer Financial Protection Bureau (CFPB) announced plans to extend the compliance deadlines for its Small Business Lending Rule, following a Supreme Court ruling that ended a temporary injunction on the rule. The rule, implementing Section 1071 of the Dodd-Frank Act, requires financial institutions to collect and report data on small business lending activities.
New compliance deadlines are:
- Tier 1 lenders (highest volume) must begin data collection by July 18, 2025, and submit by June 1, 2026.
- Tier 2 lenders (moderate volume) must begin data collection by January 16, 2026, and submit by June 1, 2027.
- Tier 3 lenders (smallest volume) must begin data collection by October 18, 2026, and submit by June 1, 2027.
The CFPB will issue an interim final rule to account for the 290-day injunction period. Notably, the final 1071 rule incorporated some of the changes that the Secured Finance Network (SFNet) advocated for, reflecting our industry’s input.