The Section 1071 requirements will, in short, require institutions to collect and report certain data on covered small business credit applications. A key piece to this puzzle will be to determine how and when the data will be obtained, or the “time and manner” in which data is to be requested and collected.
While the Final Rule actually provides quite a bit of flexibility, there is a lot to consider in order to build a compliant and efficient process. Some examples include the various ways in which applications may be received; third parties that may be involved; and handling information that is subsequently updated and/or verified.
Institutions must have procedures “reasonably designed” to collect what the Final Rule refers to as “applicant-provided data”, including the ethnicity, race and sex of an applicant’s principal owners.
Published 2026/05/07