(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 July 18, 2025.
(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 January 16, 2026.
(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 October 18, 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 October 18, 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.
(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 2023 and 2024 in lieu of calendar years
2022 and 2023 as specified in paragraphs (b) and (c)(2) of this section.
