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Infographic
7/13/2023

CFPB 1071 small business lending rule

What You Need to Know

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Section 1071 of the Dodd-Frank Act pertains to the collection and reporting of credit application data. It aims to facilitate fair lending enforcement, promote community development, and identify opportunities for women-owned, minority-owned, and small businesses.

who does section 1071 affect?

  • Covered financial institutions: One that originated at least 100 covered credit transactions for small businesses in each of the two preceding calendar years.
  • Small businesses: According to the final rule, “a small business is a business that had $5 million or less in gross annual revenue for its preceding fiscal year.”

what can you do to prepare?

Start by calculating how many covered transactions your institution originated in 2022 and 2023. This will determine your compliance tier. Section 2.1 of the Small Business Compliance Guide provides in-depth examples of covered transactions.

If you are still trying to determine the full impact of 1071, Jack Henry™ is here to help. Utilizing applicability business rules and digital data collection, we will provide the tools that can aid you in meeting Section 1071 requirements.

ensure your financial institution is prepared

Contact us for more information on how your institution can begin preparing for 1071 compliance.

For more information about Jack Henry, visit jackhenry.com

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