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2023 Tax Calendar
VIEWpoint Issue 2 | 2022
7 Trends Defining the Future of Non-Profits
What’s in the Fiscal Responsibility Act?
Reasons to Consider Outsourced Accounting for Your Non-Profit
The Consumer Financial Protection Bureau (CFPB) has issued its long-awaited final rule on small business lending. The 888-page rule implements Section 1071 of the Dodd-Frank Act. Although Congress enacted this provision in 2010, a proposed rule was not issued until 2021. There were approximately 2,100 comments on the proposal submitted to the CFPB.
The purpose of the rule is to facilitate fair lending and improve lending opportunities for women-owned and minority-owned small businesses. This is intended to be effectuated by requiring covered financial institutions to collect and report several data points for applications from small businesses with $5 million or less in gross annual revenue for the preceding fiscal year. A covered financial institution includes not only depository institutions, but also online and platform lenders.
A covered financial institution will generally have to report various data points based on the information it generates, and information it collected from applicants or an appropriate third-party source. Doeren Mayhew has outlined the required reportable data points below.
Data Collected from Applicants and Third-Party Sources
When does your institution need to start complying? There is a three-tiered approach to the compliance timeline. Each phase identifies when data must begin being collected based on annual loan origination sizes.
Covered financial institutions must report data to the CFPB by June 1 of the year following the calendar year in which the institution collected the data.
Do you have additional questions regarding this new rule? Doeren Mayhew’s Financial Institutions Group stands ready to help. Contact us today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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