CFPB to Require Reporting of Small Business Lending Information

  • The CFPB finalized a rule requiring collection and reporting of data regarding credit applications for small businesses, including women-owned and minority-owned businesses, by lenders making more than 100 covered small business loans per year.
  • The rule also allows for creation of a database of the information provided by lenders regarding the small business applications they receive, including geographic and demographic data, lending decisions, and the price of credit.
  • The CFPB plans to phase in implementation of the data reporting requirement to the largest lenders first. The finalized rule allows financial institutions to work with third parties to develop services and technologies to aid in the collection and reporting of data.