CFPB Adopts Final Rule Extending Compliance Dates For The 1071 Rule

As previously reported, in June 2025 the CFPB issued an interim final rule extending the compliance dates for the section 1071 small business data collection and reporting rule. The CFPB has now issued a final rule with the same extended compliance dates provided for in the June interim final rule. The final rule is effective December 1, 2025.

The CFPB previously revised the original compliance dates in a June 2024 interim final rule. The original, revised and new compliance dates are as follows:

Under the rule as adopted originally, lenders are in Tier 1 if they originated at least 2,500 covered loans in both 2022 and 2023, lenders are in Tier 2 if they originated at least 500 covered loans in both 2022 and 2023 and were not in Tier 1, and lenders are in Tier 3 if they originated at least 100 covered loans in both 2024 and 2025 and were not in Tiers 1 or 2. In the preamble to the final rule the CFPB advises that '[c]overed financial institutions are permitted to continue using their small business originations from 2022 and 2023 to determine their compliance tier, or they may instead use their originations from 2023 and 2024, or from 2024 and 2025. The CFPB also advises that "[c]overed financial institutions are permitted to begin collecting protected demographic data required under the 2023 final rule 12 months before their new compliance date, in order to test their procedures and systems." The CFPB also made these statements in the preamble to the June 2025 interim final rule.

In the preamble the CFPB also addresses the three lawsuits challenging the 1071 rule and its plans to reconsider the rule, which we have reported on previously. With regard to the reconsideration of the rule, the CFPB states that it "anticipates issuing a notice of proposed rulemaking as expeditiously as reasonably possible." In its Spring 2025 Regulatory Agenda the CFPB indicated an October 2025 timeframe for the issuance of a notice of proposed rulemaking. The CFPB notes that while the courts in the three lawsuits have issued stays of the 1071 rule, the stays only apply to the plaintiffs and their members.

As previously reported, in July 2025 Rise Economy, fka California Reinvestment Coalition (Rise), the National Reinvestment Coalition (NCRC), the Main Street Alliance (MSA) and Reshonda Young (a small business owner and member of MSA) filed a complaint against Acting CFPB Director Russell Vought and the CFPB seeking to force the agency to implement the section 1071 rule. The complaint was filed with the U.S. District Court for the District of Columbia. In September 2025 the plaintiffs filed a motion for a summary judgment on three of the four counts alleging violations of the Administrative Procedure Act. The plaintiffs also seek to have the court declare unlawful both the CFPB position announced earlier this year that it will not make enforcement of the reporting requirements under the rule a priority and the June 2025 interim final rule, and to vacate and set aside those agency actions. Presumably the groups will now challenge the October 2025 final rule. The CFPB has until October 10, 2025 to file its response to the summary judgment motion.