On May 16, 2024, the Supreme Court ruled in CFPB v. Community Financial Services Association of America (also known as the Community Financial case) that the CFPB’s funding mechanism is constitutional under the Appropriations Clause in the Constitution.

What does this have to do with implementation of Dodd-Frank Section 1071? Dodd-Frank Section 1071 has been opposed by a number of industry groups in various court cases. Among them, in TX Bankers Association vs. CFPB, a federal court issued in October 2023 a preliminary injunction that prevented the CFPB from enforcing the Section 1071 rule. Other litigation filed in the Eastern District of KY is also ongoing.

Current Section 1071 effective dates

On May 17, 2024, in the wake of the Community Financial decision, the CFPB announced its intention to modify the compliance dates and filing deadlines associated with the 1071 rule. Whereas before the change, the largest small business lenders had an effective date of October 1, 2024, they now have an effective date of July 18, 2025. They can submit their first LARs on June 1, 2026. Smaller institutions have more time before their effective dates.


Even though there is more time, small business lenders should not take their eyes off the ball. Just because there is more time to comply does not mean that the institutions will automatically adjust their systems to capture the new data points. This rule requires time and attention to get it right, regardless of the effective date. What compliance looks like will vary by institution, and in many cases will require mapping out new processes to ensure that data flow to the appropriate places.

ComplianceTech Small Business 1071™ Can Help Assess Readiness

ComplianceTech’s Small Business 1071™ module can help financial institutions assess readiness. It can also help you prepare SBL 1071 data with a simplified and streamlined process to ensure accuracy and compliance. With our online module, your company does not require software installation, updates, or maintenance, enabling a hassle-free and efficient compliance experience. Schedule your Small Business 1071 software demonstration today.