MVA White Collar Defense, Investigations & Regulatory Advice Blog

UPDATE: 

On May 1, 2026, the CFPB issued a final rule revising data collection requirements for small business credit applications.  The compliance deadline for the rule is January 1, 2028.  For more information regarding the rule, and the changes made to prior requirements, please refer to our blog article here.

On May 1, the Consumer Financial Protection Bureau (CFPB) announced that it will not prioritize enforcement or supervision of its small business lending data collection rule (the “Rule”) implementing the requirements of Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The statement is consistent with prior positions taken by the CFPB since the change in Administration in court proceedings challenging the Rule.  For instance, in February 2025, in Texas Bankers Association v. CFPB, the Fifth Circuit Court of Appeals granted the plaintiffs’ and intervenors’ motion to stay pending the appeal and tolled compliance for the plaintiffs and intervenors pending a further order.  On the appeal, the CFPB informed the Fifth Circuit that the CFPB did not oppose the motion to stay and the tolling of the compliance deadline to allow the CFPB’s Acting Director time to consider its position on the Rule. 

As finalized, the Rule has tiered compliance deadlines based on origination volume of covered credit transactions with small businesses, with institutions originating the highest volume of transactions subject to compliance as early as this summer.  In the May 1 announcement, the CFPB noted the unfairness of enforcing the Rule against covered financial institutions that are not currently subject to court ordered stays.  The CFPB also referenced its efforts to prioritize its enforcement and supervisory resources on other threats to consumers, highlighting threats to servicemen and veterans.  Notably, the announcement does not itself include a compliance date extension or detail on further rulemaking activity regarding the Rule but does note that the CFPB looks forward to resolving the status of the Rule.