The New Section 1071

This podcast highlights sweeping changes proposed for Section 1071 Rule that would dramatically shrink the volume of reportable small business lending and the number of institutions required to report in comparison to the lenders reporting under the CRA Rule. The most significant shift is redefining a “small business” from $5 million to $1 million in gross annual revenue, a change that would eliminate nearly half of currently reported (compared to CRA reporters) small business loans, which is magnified even further when combined with the proposal to exclude renewals (unless the loan amount increases). The Section 1071 Rule's reporting threshold for "covered" lenders would jump from 100 to 1,000 small business originations in each of the prior two calendar years. Under the current CRA Rule about 700 lenders are required to report. In comparison, under the proposed Section 1071 Rule only about 80 of those lenders have enough loan volume to be required to report under that Rule. In fact, among those potential Section 1071 lenders, the top10 would generate more than 91% of the reported small business lending activity under Section 1071. The Section 1071 proposal would also drop agricultural loans from being reported and eliminate dozens of discretionary data points, greatly reducing transparency and regulatory insight. With such far-reaching implications, the presenters urge stakeholders to actively comment before the December 15, 2025 deadline rather than remain passive. Brought to you by GeoDataVision and M&M Consulting