---
title: "Section 1071: Institution Coverage"
description: Explore the implications of the Section 1071 Final Rule, which raises the threshold for covered financial institutions and mandates compliance by January 2028.
---

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# [Section 1071: Institution Coverage](https://blog.bankerscompliance.com/en/section-1071-institution-coverage)

 Written by [Jerod Moyer](https://blog.bankerscompliance.com/en/author/jerod-moyer) | Jun 15, 2026 5:34:52 PM

The Section 1071 [Final Rule](https://www.federalregister.gov/documents/2026/05/01/2026-08494/small-business-lending-under-the-equal-credit-opportunity-act-regulation-b) 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.

[ 1071 Resources! ](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/click?encryptedPayload=AVxigLIDNdlLIVoC0hqdzngmtwGHEz4G0qsjagZOH2OYmOO%2FM6IokuOYwb5LhvPKr0W%2B6O5lonZ5fXi9yQbpIOoWlTvHUbDeTYL9wFgCtozb3JUvnTjRwIWnqaSQC%2BMA3pqljf84uMZrgvjDqxMt07aj2OkLWfR17GlGJuL%2Fvz%2FhgfvmBzi66p70IU3Mpwb%2FwsfuwPGQKsC1iqgaM7BuvMdcpwBGUwqScwgAZAR%2FeshRTHf36w8O0h9nyQ%3D%3D&portalId=21201105)

Published 2026/06/15

[View full post](https://blog.bankerscompliance.com/en/section-1071-institution-coverage)

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