CFPB Section 1071 Small Business Lending Data Collection Rule
United States · 12 C.F.R. Part 1002 Subpart B; 88 Fed. Reg. 35150
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.
Technical 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.
Who is protected: Small-business credit applicants, especially minority-owned and women-owned businesses
Who must comply: Financial institutions originating at least 100 covered small-business credit transactions per year
Key facts
| Jurisdiction | United States |
|---|---|
| Level | Federal |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2023-08-29 |
| Enacted | 2023-03-30 |
| Citation | 12 C.F.R. Part 1002 Subpart B; 88 Fed. Reg. 35150 |
| Enforced by | Consumer Financial Protection Bureau; federal banking agencies |
| 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 |
| Last verified | 2026-06-17 |
| Official source | Small Business Lending Under the Equal Credit Opportunity Act (Regulation B) — Final Rule (88 FR 35150) ↗ |
More AI rules in United States
- FTC Act Section 5 (unfair/deceptive AI) · In effect
- TAKE IT DOWN Act · In effect
- FCRA (AI in credit & background checks) · In effect
- ECOA / Regulation B (AI credit discrimination) · In effect
- Title VII / ADA (AI hiring) · In effect
- COPPA + 2025 Rule (childrens data) · In effect
Related housing and credit decisions rules elsewhere
- Colorado AI Act (repealed) · Repealed / replaced
- SB 26-189 (Colorado ADMT Law) · Enacted (not yet in effect)
- New York S7882 (felony to use algorithms to coordinate residential rents) · In effect
- DC Algorithm Bill (not enacted) · Expired
- MA AG · In effect
- NJ AG Platkin / DCR · In effect
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