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CFPB Extends Compliance Dates for Small Business Lending Rule
WASHINGTON DC – Today, the Consumer Financial Protection Bureau (CFPB) issued a interim final rule to extend compliance deadlines for the small business lending rule. After the CFPB issued the small business lending rule On March 30, 2023, a federal court in Texas suspended the rule pending the Supreme Court’s decision in CFPB v.. The Texas court also required the CFPB to extend the rule’s compliance deadlines to make up for the suspended period. Today’s interim final rule follows the Supreme Court’s recent decision in CFPB v. CFSA.
The interim final rule extends compliance dates by 290 days, which is the time elapsed between the Texas court’s first issuance of a stay last year and the Supreme Court’s decision in CFPB v. last month. Lenders with the highest volume of small business loans must begin collecting data by July 18, 2025; moderate-volume lenders by January 16, 2026; and lower-volume lenders by October 18, 2026. The deadline to report small business loan data to the CFPB remains June 1 following the calendar year for which data is collected. Thus, high-volume lenders will first submit data by June 1, 2026, while moderate- and low-volume lenders will first submit data by June 1, 2027. Under the interim final rule, lenders may continue to use their 2022 and 2023 small business originations to determine their initial compliance date or instead use their 2023 and 2024 originations.
Lenders may choose to begin collecting data earlier. The rule allows lenders to collect demographic data up to one year before their compliance date to test their procedures and systems. The CFPB also updated its grace period to reflect the revised dates. The CFPB does not intend to assess penalties for reporting errors during the first 12 months of collections and intends to conduct examinations only to help lenders diagnose compliance deficiencies, as long as lenders engage in good faith compliance efforts.
Resources to help lenders implement the Small Business Lending Rule are located at Small Business Loan Database web page. The CFPB’s small business loan data submission platform will be available for open beta testing in August. Participants interested in beta testing and others who want to receive updates related to the rule more generally should sign up for updates on Small Business Loan Database page and adding your email address in the email subscription box.
Read today’s interim final rule.
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces federal consumer financial laws and ensures that markets for consumer financial products are fair, transparent and competitive. For more information visit www.finançasconsumidor.gov.