On November 13, 2025, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule 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 (Section 1071).
Under the proposed rule, the Bureau is reconsidering coverage of certain credit transactions and financial institutions; the small business definition; inclusion of certain data points and how others are collected; and the compliance date. The CFPB believes these proposed changes would streamline the rule, reduce complexity for lenders, and improve data quality, advancing the purposes of Section 1071 and complying with recent executive directives.
Advocacy commends the CFPB for publishing this proposed rule and seeking comments from small business stakeholders on the economic impacts of Section 1071 revisions. The proposed changes, particularly the increase in the origination threshold to 1,000 transactions and the reduction of the small business definition to $1 million in gross annual revenue, represent meaningful steps toward reducing regulatory burden on small financial institutions while maintaining robust oversight of the small business lending market. Available data suggests that approximately 1,500 smaller financial institutions would be relieved from compliance costs estimated at $58,400-$95,200 annually, and that the revised thresholds will still capture over 90% of small business lending by volume.
COMMENT LETTER
Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)
(PDF, 193 KB)
CONTACT: Will Purcell
EMAIL: will.purcell@sba.gov
TAG(S): CFPB
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