The U.S. District Court for the Southern District of Texas has denied America’s Credit Unions’ motion for summary judgement to set aside the CFPB’s small business lending data collection rule. America’s Credit Unions, the Cornerstone League, and Rally Credit Union joined other organizations in filing the motion in March, requesting the rule be set aside because it is “arbitrary and capricious.”
The CFPB’s rule requires financial institutions to collect and report certain data on applications for credit to women-owned, minority-owned, and small businesses.
In yesterday’s opinion, the court found the final rule was “promulgated in accordance with the CFPB’s authority to do so, and the agency enacted the rule with the intent of furthering the purposes of Section 1071.”
Absent additional appeals, the rule will go into effect under the following timeline:
- Tier 1 institutions (highest volume lenders): July 18, 2025, is the new compliance date, with June 1, 2026, as the first filing deadline;
- Tier 2 institutions (moderate volume lenders): January 16, 2026, is the new compliance date, with June 1, 2027, as the first filing deadline; and
- Tier 3 institutions (smallest volume lenders): October 18, 2026, is the new compliance date, with June 1, 2027, the first filing deadline.
