CFPB Finalizes Section 1071 Rule

Final Rule Streamlines Requirements for Small Business Lending Data Collection

The CFPB issued a final rule (https://www.federalregister.gov/documents/2026/05/01/2026-08494/small-business-lending-under-the-equal-credit-opportunity-act-regulation-b) this week, streamlining the initial reporting requirements to 13 data points. The compliance date for eligible institutions is January 1, 2028. Only institutions making 1,000 loans or more in two consecutive years to small businesses (businesses with less than $1 million in annual revenue) are required to report this data starting in 2028.

For reference, those 13 data points are:

1) Application number (unique identifier)

2) Application date

3) Credit type (term loan, line of credit, credit card, etc.)

4) Credit purpose (working capital, equipment, real estate, etc.)

5) Applied for amount

6) Approval (or originated) amount

7) Action taken (approved, declined, withdrawn, etc.)

8) Action taken date

9) Census tract (applicant's principal place of business)

10) Gross annual revenue (preceding year)

11-13) Race, gender, and ethnicity of the principal owners

Why should institutions consider tracking this information anyway?

It's worthwhile to begin tracking this information internally, even if your institution isn't required to formally report this information. Reasons include:

1) Aligning to your CRA program data

2) Identifying missed product opportunities within your market

3) Recognizing weak geographic penetration for existing small business loan products

4) Preparing for when your institution exceeds the 1071 threshold

5) Acknowledging that this rule may expand to include smaller institutions or additional data (as updated by additional rules or legislation).

Due to the inherent nuances and credit risk associated to commercial lending, it would be dangerous to make fair lending assumptions solely on the basis of the data points listed above. More data is absolutely required for a robust and accurate Reg. B/ECOA assessment. It would not be surprising to see future incremental updates to this rule once it's implemented and the initial data is analyzed.

If you need support with small business data collection or analysis, reach out to us at contact@naqf.org.