CFPB Set to Finalize New Small-Business Lending Data Rule

The U.S. Congress passed the Dodd-Frank Act in 2010, requiring the collection of small-business lending data to determine whether businesses owned by women and minorities face discrimination. The Consumer Financial Protection Bureau (CFPB) is responsible for implementing the requirement, but the financial industry has long raised concerns about reporting costs, privacy risks and the rule's scope.

The CFPB recently finalized a scaled-back rule requiring covered financial institutions to collect information including loan applicants' sex, race and ethnicity. Data collection is expected to begin in 2028, with the first reports to the CFPB due in 2029. The delayed timetable gives firms more time to update their systems and operating procedures.