12 C.F.R. § 1002.114
§ 1002.114 Effective date, compliance date, and special transitional rules. (12 CFR Part 1002)
Operative Text
(a) Effective date. The effective date for this subpart is August 29, 2023. (b) Compliance date. The dates by which covered financial institutions are initially required to comply with the requirements of this subpart are as follows: (1) A covered financial institution that originated at least 1,000 covered credit transactions for small businesses in each of calendar years 2026 and 2027 shall comply with the requirements of this subpart beginning January 1, 2028. (2)-(3) [Reserved] (4) A financial institution that did not originate at least 1,000 covered credit transactions for small businesses in each of calendar years 2026 and 2027 but subsequently originates at least 1,000 such transactions in two consecutive calendar years shall comply with the requirements of this subpart in accordance with § 1002.105(b), but in any case no earlier than January 1, 2029. (c) Special transitional rules—(1) Collection of certain information prior to the compliance date. A financial institution that reasonably anticipates being a covered financial institution as described in paragraph (b)(1) of this section is permitted, but not required, to collect information regarding whether an applicant for a covered credit transaction is a minority-owned business and/or a women-owned business under § 1002.107(a)(18), and the ethnicity, race, and sex of the applicant's principal owners under § 1002.107(a)(19) beginning 12 months prior to the compliance date as set forth in paragraph (b)(1) of this section. A financial institution collecting such information pursuant to this paragraph (c)(1) must do so in accordance with the requirements set out in §§ 1002.107(a)(18) and (19), 1002.108, and 1002.111(b) and (c). (2) Determining which compliance date applies to a financial institution that does not collect information sufficient to determine small business status. A financial institution that is unable to determine the number of covered credit transactions it originated for small businesses in each of calendar years 2026 and 2027 for purposes of determining its compliance date pursuant to paragraph (b) of this section, because for some or all of this period it does not have readily accessible the information needed to determine whether its covered credit transactions were originated for small businesses as defined in § 1002.106(b), is permitted to use any reasonable method to estimate its originations to small businesses for either or both of the calendar years 2026 and 2027. (3) Alternative time period for determining compliance dates. A financial institution is permitted to use its originations of covered credit transactions in each of calendar years 2025 and 2026 in lieu of calendar years 2026 and 2027 as specified in paragraphs (b) and (c)(2) of this section.
Section 1002.114 establishes when the small business lending data collection requirements under this subpart take effect and when different categories of financial institutions must begin following them. The rule became effective August 29, 2023, but compliance obligations are staggered: institutions that originated at least 1,000 covered small business credit transactions in each of 2026 and 2027 must comply starting January 1, 2028, while institutions that cross that threshold later face a compliance date no earlier than January 1, 2029. The rule also includes transitional provisions allowing early voluntary data collection, estimation methods for institutions lacking complete origination records, and an option to use 2025–2026 origination data instead of 2026–2027 to determine which compliance deadline applies.
Plain English — not legal advice.
Although § 1002.114 is primarily directed at financial institutions rather than property owners, landlords who operate as small business lenders or who seek small business credit should be aware of how this provision structures compliance timelines. A covered financial institution generally tracks its annual origination volume for calendar years 2026 and 2027—or optionally 2025 and 2026—to determine whether the January 1, 2028 compliance date applies to it. Institutions that anticipate meeting the 1,000-transaction threshold under § 1002.114(b)(1) are permitted to begin voluntarily collecting minority-owned business, women-owned business, and principal owner demographic data up to 12 months before their compliance date.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 1002.114 is primarily a rule governing financial institutions' data collection obligations, but small business owners and applicants for small business credit have an interest in understanding when these protections take hold. Once a lender's compliance date arrives under § 1002.114(b), that lender is required to collect and report data that can reveal patterns in small business lending, which supports fair-lending oversight. Applicants who believe a lender subject to this subpart is not meeting its data collection obligations may raise that concern with the Consumer Financial Protection Bureau or consult a tenant- or small business-rights organization for guidance on 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.
Effective Timeline
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