Now that the Consumer Financial Protection Bureau (CFPB) has released its Final Rule implementing reporting requirements for small business lending, it’s time to start preparing for this sweeping new set of requirements. Under the rule, lenders will collect and report information about the small business credit applications they receive, including geographic and demographic data, lending decisions, and the price of credit. While the requirements are designed to increase transparency in small business lending and combat unlawful discrimination, the process for gathering the new data will require substantial work from lenders. The changes will be phased in, with the largest lenders required to begin reporting on October 1, 2024.
Click through to get a preview of the major reporting changes ahead.