On June 18, the CFPB issued an interim final rule in the Federal Register extending the compliance dates for its 2023 Small Business Lending Under the Equal Credit Opportunity Act rule (Regulation B). The Bureau indicated this extension came in response to several court orders in ongoing litigation challenging the rulemaking. Challenges to the 2023 final rule remain pending in three jurisdictions with courts in each case staying the rule’s compliance deadlines for certain market participants (here, here and here).
As previously covered by InfoBytes, the CFPB in 2023 released its final rule implementing Section 1071 of the Dodd-Frank Act to require financial institutions to collect and provide to the Bureau data on lending to small businesses. The current interim final rule will extend the compliance deadlines established by the 2023 final rule (as amended by a 2024 interim final rule) by approximately one year for all covered financial institutions. The new compliance date for the highest volume lenders (Tier 1) is July 1, 2026, with a first filing deadline of June 1, 2027. Moderate volume lenders (Tier 2) must comply by January 1, 2027, and the smallest volume lenders (Tier 3) by October 1, 2027; both tiers will face a first filing deadline of June 1, 2028. Comments on the interim final rule were due by July 18.
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