As it seeks to implement Section 1071 of the Dodd-Frank Act, the CFPB has proposed revisions to its small-business lending data rule to narrow the scope of the data collected, to ensure its quality and to limit, as much as possible, any disturbance of the provision of credit to small businesses. The proposed rule would remove the following discretionary data points added by the 2023 final rule: application recipient and method, denial reasons, pricing information, and number of workers.

Other proposed changes include:

• Excluding merchant cash advances, agricultural lending and small-dollar loans from the definition of covered credit transaction.
• Excluding Farm Credit System lenders from coverage, and raising the origination threshold for which institutions are covered from 100 to 1,000 credit transactions for each of two consecutive years.
• Decreasing the gross annual revenue threshold in the rule’s definition of a small business from $5 million or less to $1 million or less.

The CFPB said it plans to take an incremental approach in which the rule could be revisited in the future to add more data points to the collection requirements, if needed. The CFPB proposes extending the rule’s compliance date to January 1, 2028, for all covered financial institutions. Comments must be received on or before December 15, 2025.

Author: sdbrownlow

Student of Design