The Section 1071 requirements require institutions to collect and report certain data on covered small business credit applications. There are specific provisions surrounding how and when such data will be obtained, or as the regulation refers to as, the “time and manner” in which the data is requested and collected. Section 1002.107(c)(1) states, …a covered financial institution shall maintain procedures to collect applicant-provided data…and shall otherwise maintain procedures to collect such data at a time and in a manner that are reasonably designed to obtain a response.
While the Final Rule actually provides quite a bit of procedural flexibility, there is a lot to consider in order to build a compliant and efficient process. The Commentary to this Section also states, …whether a financial institution’s procedures are reasonably designed to collect applicant-provided data is a fact-based determination and may depend on the financial institution’s particular lending model, product offerings, and other circumstances; procedures that are reasonably designed to obtain a response may therefore require additional provisions beyond the minimum criteria….
Published 2026/08/31