Summary of Section 1071 Proposed Rule 2025 – Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)

December 10, 2025 / Source: Compliance Alliance

Updated 12/10/2025This tool summarizes the CFPB’s 2025 Proposed Rule which proposes to revise certain provisions of Regulation B, subpart B, implementing changes to the Equal Credit Opportunity Act made by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The summary discusses the key aspects of the new Proposed Rule, which include:

• Excluding certain additional transactions from the definition of a “covered credit transaction;”
• Raising the originations threshold of covered credit transactions for determining a covered financial institution;
• Reducing the gross annual revenue threshold in the definition of a small business;
• Eliminating certain discretionary data points from collecting and reporting requirements;
• Changing certain requirements for how to collect, and what information to collect, regarding the demographics of the owners of small businesses;
• Eliminating the tiered compliance data system and requiring all covered financial institutions to begin compliance as of January 1, 2028, with coverage thresholds based on originations volumes in 2026 and 2027.