Small LENDER Act

This proposal delays and softens how lenders must follow the federal small‑business lending data rule. Lenders get three years from when the rule was issued to meet the requirements, plus a two‑year “safe harbor” after that where they must try to comply but won’t be fined if they fall short. The rule at issue is the Consumer Financial Protection Bureau’s small‑business lending data rule under Regulation B, published May 31, 2023.

It also narrows who counts as a “small business” for this rule to those making $1,000,000 or less in annual revenue in the most recent year, and it limits which lenders are covered to those that made at least 500 small‑business credit transactions in each of the last two years.

• Who is affected: Lenders that make 500+ small‑business loans or credit deals each year; small businesses with $1,000,000 or less in annual revenue.
• What changes: A 3‑year phase‑in to comply, followed by a 2‑year period with no penalties while lenders are still expected to comply; applies to the CFPB’s small‑business lending data rule.
• When: The 3‑year clock starts from the date the CFPB issued the rule (May 31, 2023), then the 2‑year safe harbor begins after that.

What this means for communities: small lenders get more time to build systems and staff to track data, which could reduce sudden costs or service disruptions. Small businesses may see a slower rollout of new data requests, but the rule still applies during the safe‑harbor period, just without penalties for lenders who are making good‑faith efforts to comply.