CFPB § 1071 Rule (small-biz AI lending)
CFPB Section 1071 Small Business Lending Data Collection Rule
United States · 12 C.F.R. Part 1002 Subpart B; 88 Fed. Reg. 35150
- Status
- In effect
- Took effect
- August 29, 2023
- Applies to
- Financial institutions originating at least 100 covered small-business credit transactions per year
- Enforced by
- Consumer Financial Protection Bureau; federal banking agencies
Lenders covered by the rule must collect and report demographic and transactional data on small-business credit applications — including data needed to detect algorithmic discrimination by AI underwriting models.
Who is protected: Small-business credit applicants, especially minority-owned and women-owned businesses
Legal detail
12 C.F.R. Part 1002, Subpart B (Regulation B), implementing § 1071 of the Dodd-Frank Act / § 704B of ECOA (15 U.S.C. § 1691c-2). Requires covered financial institutions to compile, maintain, and submit data on credit applications from small businesses, including demographic data permitting fair-lending analysis of algorithmic and AI-driven underwriting decisions.
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Strength | Moderate |
| Enacted | March 30, 2023 |
| Citation | 12 C.F.R. Part 1002 Subpart B; 88 Fed. Reg. 35150 |
| Private right of action | No, agency enforcement only |
| Penalties | ECOA civil money penalties (tiered to $13,237/$66,184/$1,323,663 per day, adjusted annually); injunctive relief |
| Topics | housing and credit decisions · automated decision-making · AI disclosure and transparency · consumer protection |
| Agency page | Small Business Lending Under the Equal Credit Opportunity Act (Regulation B) — Final Rule (88 FR 35150) |
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