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Section 1071 1071
Also called 1071, small business lending data rule, Dodd-Frank 1071.
The Dodd-Frank provision requiring covered financial institutions to collect and report data on small business credit applications, including demographic information about the applicants.
Drafted with AI assistance and checked by a person. Its factual claims were verified against the sources listed at the end, by Find Me Funders research desk.
What it means
The statute directs collection of application-level data — the application number and date, the type and purpose of the credit, the amount applied for and the amount approved, the action taken and its date, the census tract of the principal place of business, the applicant's gross annual revenue, and the race, sex and ethnicity of the principal owners — so that lending to small, women-owned and minority-owned businesses can be analysed. Its stated purpose is "to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses." The design is comparable in purpose to mortgage data collection.
Pricing is not on the statutory list. The Bureau added a pricing data point by rule and has since removed it: the reconsideration final rule of 1 May 2026 dropped the data points for application method, application recipient, denial reasons, pricing information and number of workers.
It is a reporting obligation, not a borrower disclosure regime. Nothing in it standardises what a small business is told about the cost of an offer, which is the gap state commercial financing disclosure laws address separately. It is also not a rate cap and not an eligibility rule.
Implementation has been contested and repeatedly rescheduled. The 2023 rule drew litigation and court-ordered stays, and the reconsideration final rule of 1 May 2026, effective 30 June 2026, narrowed it substantially: the origination threshold for a covered financial institution rose from 100 to 1,000 covered credit transactions in each of two consecutive years, the rule's definition of a small business moved from $5 million or less in gross annual revenue to $1 million or less, and Farm Credit System lenders were excluded. The compliance date is 1 January 2028, with a grace period running to 31 December 2028. Confirm against the rule in force before relying on any of it.
Where this one catches people
Two misreadings circulate. Brokers and merchants sometimes describe it as a coming disclosure law that will finally put an APR on advance offers — it is not, it collects data from providers for regulatory analysis. And smaller non-bank providers sometimes assume it reaches banks only. The statute defines a financial institution as "any partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity that engages in any financial activity", which is not confined to depositories. What narrows it is the rule's origination threshold, raised by the 2026 reconsideration rule to 1,000 covered credit transactions in each of two consecutive years.
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Sources and checks
Every figure on this page traces to a document someone read, on a date. Where a check is past its review date it says so rather than passing as current.
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Pricing is not among the data points the statute directs be collected
definitionSubsection (e)(2) lists the application number and date, "the type and purpose of the loan", "the amount of the credit ... applied for, and the amount ... approved", "the type of action taken", census tract, "the gross annual revenue", and "the race, sex, and ethnicity of the principal owners".
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The statute’s stated purpose is fair lending enforcement and identifying the needs of women-owned, minority-owned and small businesses
definition"The purpose of this section is to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses."
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The 2026 reconsideration final rule removed the pricing data point along with application method, application recipient, denial reasons and number of workers
definitionThe Bureau eliminates data points for "application method, application recipient, denial reasons, pricing information, and number of workers."
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The 2026 rule raised the origination threshold to 1,000 covered transactions in each of two consecutive years, moved the small business revenue threshold to $1 million or less, and excluded Farm Credit System lenders
definitionThe rule raises "the origination threshold from 100 to 1,000 covered credit transactions for each of two consecutive years", changes "the gross annual revenue threshold ... from $5 million or less to $1 million or less", and "exclude[s] FCS lenders from coverage".
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The rule is effective 30 June 2026 with a compliance date of 1 January 2028 and a grace period through 31 December 2028
definition"This final rule is effective on June 30, 2026." "The compliance date for the rule is January 1, 2028." The rule establishes a grace period "from January 1, 2028, through December 31, 2028."
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Litigation over the 2023 rule remains pending with court-ordered stays that reach only plaintiffs and intervenors
definitionLegal challenges to the 2023 rule remain pending in three jurisdictions with court-ordered stays; those stays "apply only to plaintiffs and intervenors" while other covered institutions must comply.
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The current data-point list in Regulation B § 1002.107(a) contains no pricing data point
definition§ 1002.107(a) enumerates unique identifier, application date, credit type, credit purpose, amount applied for, amount approved or originated, action taken, action taken date, census tract, gross annual revenue, NAICS code, time in business, ownership status, and demographics.
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The statutory definition of a financial institution is not confined to depositories
trap"The term 'financial institution' means any partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity that engages in any financial activity."
Section 1071 — common questions
What does section 1071 mean?
The Dodd-Frank provision requiring covered financial institutions to collect and report data on small business credit applications, including demographic information about the applicants.
Where does section 1071 catch people out?
Two misreadings circulate. Brokers and merchants sometimes describe it as a coming disclosure law that will finally put an APR on advance offers — it is not, it collects data from providers for regulatory analysis. And smaller non-bank providers sometimes assume it reaches banks only. The statute defines a financial institution as "any partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity that engages in any financial activity", which is not confined to depositories. What narrows it is the rule's origination threshold, raised by the 2026 reconsideration rule to 1,000 covered credit transactions in each of two consecutive years.
Is section 1071 the same as an interest rate?
Section 1071 is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does section 1071 apply to?
It is not specific to one product — it appears across the market.
Is there a worked example of section 1071?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside section 1071?
Disclosure law, Truth in Lending Act, Underwriting, Usury.
Has this definition been checked?
Yes. Its claims were verified against the sources listed at the end of this page, and the reviewer is named.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.