Section 1071: Institution Coverage
The Section 1071 Final Rule defines a “covered financial institution” as …a financial institution, other than a Farm Credit System lender, that originated at least 1,000 covered credit transactions for small businesses in each of the two preceding calendar years. This is a significant increase (from what had been 100 covered credit transactions) and will likely eliminate many financial institutions from coverage. That said, when you set out to determine whether your institution is covered, there is a special transitional rule that you could, but are not required to, utilize.
Compliance with the Final Rule is mandatory on January 1, 2028.
Jerod explains more in the video.
Published 2026/06/15
Jerod Moyer
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!