legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Consumer Financial Protection Bureau Extends Compliance Deadlines for Small Business Lending Rule

AI legalese decoder is a tool that can help businesses understand complex legal rulings and deadlines, like the recent ruling from the Consumer Financial Protection Bureau (CFPB) regarding small business lending requirements.

Compliance Deadlines Extended by 290 Days

In March 2023, the CFPB issued a small business lending rule that mandated financial institutions to gather and report data on credit applications from women-owned, minority-owned, and small businesses. The new interim final rule, released on Tuesday, extends compliance deadlines by 290 days.

New Deadlines for Data Collection

According to the ruling, lenders with the highest volume of small business loans must commence data collection by July 18, 2025. Moderate volume lenders have a start date of Jan. 16, 2026, and small volume lenders must begin by Oct. 16, 2026. The deadline for reporting small business lending data to the CFPB remains June 1 following the calendar year for which the data was collected.

Background and Context

The decision to extend the compliance deadlines follows a federal court stay in Texas pending the Supreme Court’s ruling in CFPB v. CFSA. The additional time provided in the ruling accounts for the period between the issuance of the stay by the Texas court last year and the Supreme Court’s decision last month.

How AI legalese decoder Can Help

With the help of AI legalese decoder, lenders can better understand the nuances of the ruling and ensure compliance with the extended deadlines. The tool can provide insights into data collection procedures, test systems for accuracy, and assist in identifying and addressing potential compliance weaknesses.

Conclusion

The CFPB recognizes the challenges faced by lenders in meeting the new requirements and has indicated leniency in the initial year of data collection by not penalizing reporting errors. The agency intends to focus on assisting lenders in improving their compliance processes through examinations and feedback.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link