The Consumer Financial Protection Bureau today issued an interim final rule to formalize its previous announcement that it had extended by 290 days the compliance dates for its Section 1071 small-business data collection rule. Under the change, lenders with the highest volume of small-business loans must begin collecting data by July 18, 2025; moderate-volume lenders by Jan. 16, 2026; and the smallest-volume lenders by Oct. 18, 2026. The deadline for reporting small-business lending data to the CFPB remains June 1 following the calendar year for which data is collected.
The CFPB also announced that it does not intend to assess penalties for reporting errors for the first 12 months of collection. It intends to conduct examinations only to assist lenders in diagnosing compliance weaknesses, “so long as lenders engage in good faith compliance efforts.”
A federal court in Texas last year stayed the rule in a lawsuit filed by the Texas Bankers Association, ABA and others challenging the regulation, ruling that the CFPB could not enforce it until the U.S. Supreme Court decided on the constitutionality of the bureau’s funding structure in a separate case. The high court upheld the CFPB’s funding earlier this year. The Texas court also ruled that the CFPB must extend the rule’s compliance deadlines to compensate for the period stayed.
