More time will be allowed to comply with a small business lending rule issued last year by the consumer financial protection agency, it said Friday, “in light of court orders in ongoing litigation.”
The Consumer Financial Protection Bureau (CFPB) said it plans to issue an interim final rule to extend the compliance date.
The agency is considering extending the compliance date for tier 1 institutions under the rule to be July 18, 2025. For tier 2 institutions, Jan. 16, 2026, and for tier 3 institutions, Oct. 18, 2026.
The final rule, unveiled March 30, 2023 (meeting a court order to finalize the rule by March 31), requires lenders to collect and report information about the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit. Lenders that originate at least 500 loans annually must collect data starting April 1, 2025. Those that originate at least 100 loans annually must collect data starting Jan. 1, 2026.
Upon announcement of the rule in March, banks, credit unions and other groups leveled criticism, calling it “unnecessarily far-reaching” and “misguided.”
Small business lending rule rulemaking: compliance date extension