(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 2,500 covered credit transactions for small
businesses in each of calendar years 2022 and 2023 shall comply with
the requirements of this subpart beginning October 1, 2024.
(2) A covered financial institution
that is not subject to paragraph (b)(1) of this section and that originated
at least 500 covered credit transactions for small businesses in each
of calendar years 2022 and 2023 shall comply with the requirements
of this subpart beginning April 1, 2025.
(3) A covered financial institution that
is not subject to paragraphs (b)(1) or (2) of this section and that
originated at least 100 covered credit transactions for small businesses
in each of calendar years 2022 and 2023 shall comply with the requirements
of this subpart beginning January 1, 2026.
(4) A financial institution that did not
originate at least 100 covered credit transactions for small businesses
in each of calendar years 2022 and 2023 but subsequently originates
at least 100 such transactions in two consecutive calendar years shall
comply with the requirements of this subpart in accordance with section
1002.105(b), but in any case no earlier than January 1, 2026.
(c) Special transitional
rules.
(1) Collection of certain information prior
to a financial institution’s compliance date. A financial
institution as described in paragraphs (b)(1), (2), or (3) 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, a women-owned business, and/or an LGBTQI+-owned business
under section 1002.107(a)(18), and the ethnicity, race, and sex of
the applicant’s principal owners under section 1002.107(a)(19)
beginning 12 months prior to its applicable compliance date as set
forth in paragraphs (b)(1), (2), or (3) 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 sections
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 2022 and
2023 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 section 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 2022 and 2023.
