Consumer Financial Protection Bureau Issues Small Entity Compliance Guide for Dodd-Frank 1071

On May 12, the Consumer Financial Protection Bureau issued a Small Entity Compliance Guide as a resource for financial institutions who will need to implement the requirements of the recently completed rule on small business data collection and reporting. The compliance guide is a follow up to the nearly 900-page Final Rule implementing Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was released on March 30, 2023. The compliance guide includes a detailed summary of the Rule’s mandates and uses examples to illustrate some key portions of the Final Rule.  

As a reminder,  the Final Rule enacting Section 1071 requires covered financial institutions to collect over 80 data point fields for small business credit applications, including an applicant’s status as a minority-owned or woman-owned business. The collected data is subsequently reported to the CFPB on an annual basis. The CFPB will make certain data available to the public. 

SFNet published an analysis for members, which  you can read here: https://www.sfnet.com/home/industry-data-publications/the-secured-lender/tsl-express-daily-articles-news/tsl-express-daily-articles-news/2023/03/30/cfpb-releases-final-1071-regulations-factoring-and-certain-asset-based-lenders-carved-out