CFPB Extends Business Lending Rule

On Jun. 25, CFPB extended compliance dates re business lending rule.

  • CFPB issued notice to extend the compliance dates for the small business lending rule.
  • Provided unofficial redline of small business lending compliance dates interim final rule.
  • Follows CFPB Sep. 2021 proposed small business lending data collection, see #114890
  • Small Business Lending
  • Extends compliance dates for several provisions/supplements under 12 CFR 1002
  • The interim final rule follows the recent Supreme Court decision in CFPB v.CFSA, which extends compliance date by 290 days, from the start of foregoing case to last month.
  • Lenders with the highest volume of small business loans must begin collecting data by Jul. 18, 2025, lenders with moderate volume of loans must begin by Jan. 16, 2026.
  • The lenders with the smallest volume must begin collecting data by Oct. 18, 2026.
  • Deadline for reporting small business lending data to the CFPB is Jun. 1 following the calendar year the data was collected, so Jun. 1, 2026 and Jun. 1, 2027, respectively.
  • Lenders may use their small business originations from 2022 and 2023 to determine their initial compliance date, or instead use their originations from 2023 and 2024.
  • Rule permits lenders to collect demographic data up to 1 year before the compliance date to test their procedures and systems, and has also updated the grace period.
  • CFPB does not intend to assess penalties for reporting errors for the first 12 months.
  • Comments
  • Comments on extension must be sent within 30 from publication in federal register.
  • Jul. 2024 Fed Reg Extended Dates
  • On Jul. 3, 2024, CFPB published interim rule on compliance dates in federal register.
  • Interim final rule is effective Aug. 2, 2024; comments to be received on/before Aug. 2.

Regulators CFPB
Entity Types Bank; Corp; Thrift
Reference 89 FR 55024, 7/3/2024; RF, Gd, 6/25/2024; Docket: CFPB-2024-0018; RIN 3170-AA09; Citation: 12 CFR 1002;
Functions Compliance; Financial; Legal; Operations; Record Retention
Countries United States of America
Products Banking; Loan
Regions Am
Rule Type Final
Rule Date 6/25/2024
Effective Date 8/2/2024
Rule Id 217121
Linked to Rule :114890
Reg. Last Update 7/3/2024
Report Section US Banking

Last substantive update on 07/07/2024