My bank is looking for more information about the current court stay of the Consumer Financial Protection Bureau’s (CFPB) final Small Business Lending Rule, also known as the Dodd-Frank Section 1071 Rule. This rule mandates that financial institutions collect and report data on loan applications from women-owned, minority-owned, and LGBTQI+-owned small businesses.
Q Have the compliance dates been again postponed? If so, for how long? How do banks determine the new compliance dates?
A The compliance dates are postponed again for the plaintiffs and intervenors who have challenged the Section 1071 rule. ABA is one of the plaintiffs in the case, which is before the 5th Circuit Court of Appeals. On February 7, 2025, the Court granted the plaintiffs’ motion for a stay of the rule’s mandatory compliance dates while the court considers the plaintiffs’ appeal. The length of the stay will be determined by the number of days from October 23, 2024, the original date of the motion filed by the plaintiffs, to the date the 5th Circuit rules on the merits of the appeal. Once the court rules, banks will determine their new compliance date by adding that number of days to the mandatory compliance dates in the CFPB’s Interim Final Rule issued June 24, 2024.
Note that while not all financial institutions are protected under this ruling, ABA member banks are, as ABA is one of the plaintiffs in the suit.
For more information, contact ABA’s Leslie Callaway. Please note that this section is not a substitute for professional legal advice.
