Section 1071 Bank Coverage

In case you missed it, on March 30, 2023, the CFPB issued its Final Rule for Small Business Lending under the Equal Credit Opportunity Act (aka Section 1071). The Final Rule outlines the requirements to collect and report certain data of small business credit applications, including those that are minority-owned and women-owned.

One of the first things you need to determine is whether your financial institution is subject to the new Rule.

Jerod explains more in the video.

Video Highlights:

• The loan volume threshold in the proposal (25) was increased to 100 in the Final Rule.
• The loan volume threshold looks at originations in each of the prior two calendar year ends.

This is going to take a lot of planning, training, and procedural updates within your institution. We are dissecting the Final Rule and working to bring you plain English solutions!

Published
2023/04/14