On May 1, 2026, the Consumer Financial Protection Bureau issued a final rule substantially revising subpart B of Regulation B, which implements Section 1071 of the Dodd-Frank Act. The amendments narrow the scope of the small business lending data collection regime in three significant respects, providing meaningful relief to a broad cross-section of lenders that had been preparing for compliance under the prior framework.
Most notably, the final rule raises the origination threshold tenfold, from 100 to 1,000 covered loans. This change exempts a substantial number of community banks, credit unions, and smaller commercial lenders from the data collection, reporting, and recordkeeping obligations of Section 1071. Institutions that previously expected to be drawn into the regime based on modest small business lending volumes may now fall outside its reach, and should reassess whether continued investment in 1071 compliance infrastructure remains warranted.
The final rule also narrows the categories of transactions subject to reporting. Merchant cash advances, agricultural lending, and small-dollar loans are excluded from coverage under the revised subpart B. Lenders whose small business portfolios are concentrated in these product lines may experience a marked reduction in reportable activity, though they should continue to monitor fair lending and other regulatory expectations that apply independent of Section 1071.
In a further notable change, the Bureau has replaced the prior tiered implementation schedule with a single compliance date of January 1, 2028. Covered institutions of all sizes will be subject to the same effective date, providing a unified runway to build data collection workflows, reporting systems, governance controls, and personnel training. The consolidated timeline simplifies project planning but also concentrates implementation risk, as institutions can no longer rely on staggered phases to sequence vendor selection, system testing, and remediation.
Covered lenders should use the period before January 1, 2028 to reconfirm coverage analyses under the revised threshold, scope reportable product lines under the narrowed definitions, and align internal policies, data dictionaries, and oversight structures accordingly. Institutions newly outside the rule's scope should document their analysis in a manner consistent with their compliance management systems.
This update is provided for general informational purposes only and does not constitute legal advice. Clients are encouraged to seek tailored guidance regarding the application of the final rule to their specific lending operations.