The Section 1071 Rule requires financial institutions to collect and report certain data for covered loan applications from small businesses. This includes:
- Business ownership status (i.e., whether the applicant is a minority-owned business or a women-owned business);
- the number of principal owners; and,
- the ethnicity, race and sex of the applicant’s principal owners.
Numbers one and three are considered restricted data which means that employees or officers that are involved in making any determination concerning the covered application generally cannot access or view it.
Jerod explains more in the video.
Published 2026/08/21
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!
