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On October 2, The CFPB finalized a rule extending the compliance deadlines for its 2023 Small Business Lending Data Collection Rule under the Equal Credit Opportunity Act (ECOA) and Regulation B. The final rule confirms the Bureau's June 2025 interim rule delaying implementation by approximately one year to align compliance timelines across institutions affected by federal court stays and ongoing litigation over the rule's validity.
The rule extends the compliance dates established under the 2023 Small Business Lending Rule, maintains the 12-month grace period, and makes minor technical corrections to Regulation B. Covered institutions must now begin collecting data between mid-2026 and late-2027, depending on origination volume, with initial filing deadlines in 2027 for larger lenders and in 2028 for smaller ones.
Lenders may calculate their compliance tier using origination data from any consecutive two-year period between 2022 and 2025, offering additional flexibility for institutions with varying lending activity. The rule also allows financial institutions to begin collecting demographic data up to twelve months before their compliance date to test internal systems and ensure accuracy. The CFPB reaffirmed that its 12-month Grace Period Policy Statement remains in effect and confirmed only minor technical corrections to official commentary.
Putting It Into Practice: The CFPB's latest action signals continued uncertainty around the future of the Section 1071 small business lending rule (previously discussed here, here, here, and here). The Bureau has also committed to rewriting the rule. Financial institutions should maintain implementation planning for the revised dates but also keep an eye on the ongoing rulemaking process.
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