The rule will also now cover closed-end loans, lines of credit, business credit cards, online credit products, and merchant cash advances by banks, nonbanks, credit unions, and other lenders. The CFPB defined a small business as one with gross revenue under $5 million in its fiscal year.

“Many local businesses were shuttered during the COVID-19 pandemic after they struggled to obtain credit under the Paycheck Protection Program,” said CFPB director Rohit Chopra. “This small business loan census will give the public key data on this market to ensure that banks and nonbanks are serving small businesses fairly.”

To “ensure a smooth transition,” the bureau said it will reduce duplicative reporting requirements. “Loans reportable under the Home Mortgage Disclosure Act will not need to be reported under the small business lending rule,” the CFPB said in its announcement. “The rule is also designed to work in concert with rules under the Community Reinvestment Act’s reporting requirements. Under the regulators’ Community Reinvestment Act proposal, data submitted under the CFPB’s rule would satisfy the relevant Community Reinvestment Act requirements.

Additionally, the CFPB will allow financial institutions to work with third parties to develop services and technologies that will help in collecting and reporting data. The CFPB will also give additional implementation time to small lenders with strong records of service, as measured by their performance under relevant frameworks like the Community Reinvestment Act and similar state laws.

However, MBA president and CEO Bob Broeksmit was not all too happy with the final rule.