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| Final Regulation Summary on CFPB Small Business Lending Rule |
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A new Final Regulation Summary of the CFPB’s small business lending data collection rule is available from America’s Credit Unions’ Compliance team. Finalized April 30, the final rule includes many credit union-sought changes to reduce regulatory burdens while still enabling credit unions to serve their members effectively.
Revised from a 2023 final rule, the narrower scope will benefit credit unions by:
• Raising the origination threshold for covered financial institutions to 1,000 covered transactions for each of the preceding two years and excludes Farm Credit System lenders from coverage;
• Lowers the gross annual revenue threshold defining a small business to $1 million;
• Limits data collection to the statutory 1071 data points and removes many discretionary data points;
• Revises regulatory text and the associated commentary to adopt a more flexible standard regarding the time and manner of collecting applicant demographics; and
• Eliminates the previous tiered compliance dates in favor of a single, uniform compliance date for all covered financial institutions: Jan. 1, 2028.
The summary also includes a link to the final rule, background on its development, section-by-section analysis, and more.
The rule takes effect June 30.
Copyright © 2024-2026 America's Credit Unions. (link) |
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