12 C.F.R. § 1002.105
§ 1002.105 Covered financial institutions and exempt institutions. (12 CFR Part 1002)
Operative Text
(a) Financial institution means any partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity that engages in any financial activity. (b) Covered financial institution means a financial institution, other than a Farm Credit System lender, that originated at least 1,000 covered credit transactions for small businesses in each of the two preceding calendar years.
Section 1002.105 establishes which entities fall under the small business lending data collection requirements of 12 CFR Part 1002. A 'financial institution' is defined broadly to include virtually any type of legal entity engaged in financial activity. However, only those institutions—excluding Farm Credit System lenders—that originated at least 1,000 covered small business credit transactions in each of the two prior calendar years qualify as 'covered financial institutions' subject to the rule's full obligations.
Plain English — not legal advice.
While § 1002.105 is primarily directed at financial institutions rather than property owners, landlords who operate lending or financing arms—such as entities that extend credit to small business tenants—should be aware of whether their transaction volume meets the 1,000-origination threshold in each of the two preceding calendar years. A compliant operator in the financial space generally tracks annual origination counts to determine whether covered financial institution status applies. Entities that cross this threshold typically prepare to meet the data collection and reporting requirements that flow from that designation under 12 CFR Part 1002.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Small business owners who are applicants for credit should know that § 1002.105 determines which lenders are bound by the data collection protections of 12 CFR Part 1002. If a lender meets the covered financial institution threshold, it is generally required to collect and report data on small business credit applications, which can support fair lending oversight. Tenants or small business owners who believe a qualifying lender has not followed applicable requirements may consider contacting the Consumer Financial Protection Bureau (CFPB) or a tenant- and small-business-rights organization to understand available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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