The CFPB's revised 1071 rule, issued May 1, 2026, narrows coverage sharply. Lenders need 1,000 originations in each of two years, and merchant cash advances are out. Pricing data is cut, and compliance starts January 1, 2028.
What the CFPB Changed
The CFPB issued a revised Section 1071 final rule on May 1, 2026. Per Baker Donelson's key takeaways, it takes effect June 30, 2026. Mayer Brown confirms Federal Register publication the same day, at 91 Fed. Reg. 23,530.
The 2023 rule's $5 million threshold for a "small business" is replaced. Only applicants with gross annual revenue of $1 million or less now count.
Which Lenders Count
At least 1,000 originations in each of the two preceding calendar years triggers reporting. Farm Credit System lenders are exempt.
The 2023 rule set that threshold at 100, per Mayer Brown. That volume test is the real filter. Lenders below it never report, however many small businesses they serve.
What Got Cut
The rule drops several data points. Gone are application method, application recipient and denial reasons. Pricing information, number of workers and LGBTQI+-owned status go too.
All 12 statutory data points remain. Ethnicity, race and sex of principal owners shrink to aggregate categories. Three discretionary points stay: three-digit NAICS code, time in business and number of principal owners.
Pricing is the loss that matters to borrowers. A dataset without prices cannot show who charges what.
Merchant Cash Advances Fall Outside
The revised rule excludes merchant cash advances, agricultural lending and transactions of $1,000 or less. Factoring, trade credit and leases were already excluded.
Covered products are loans, lines of credit and credit cards. Texas now regulates MCAs directly, as covered in our Texas registration report.
Our merchant cash advance guide explains how these products are structured.
Quick Check
No federal price data does not mean no way to compare.
Revenue-based capital is quoted as a stated multiple. Compare it directly with any other offer you hold.
Check Capital Eligibility →The Calendar
Voluntary collection of principal owners' demographic data may begin January 1, 2027. The single compliance date is January 1, 2028.
A good-faith grace period runs through 2028 for institutions under CFPB jurisdiction. The first annual data report is due June 1, 2029.
Compliance Calendar
Revised 1071 Rule: Key Dates
From issuance to the first public report.
Source: Baker Donelson summary of the CFPB's May 1, 2026 final rule.
What It Means for Borrowers
The revised rule will collect data from fewer lenders, starting in 2028. It will not carry prices or denial reasons.
Owners will have to compare offers on their own. The capital cost multiple calculator does that math across financing types. Our alternative funding overview maps the options.
Capital Intelligence
The Revised Rule at a Glance
Seven elements of the May 2026 rule and what each means for owners.
| Element | Revised rule (May 1, 2026) | What it means for borrowers |
|---|---|---|
| Who is a small business | Gross annual revenue of $1 million or less in the preceding fiscal year | The 2023 rule's $5 million threshold is gone |
| Which lenders report | Institutions with at least 1,000 covered originations in each of the two preceding years | Small banks, credit unions and online lenders below that volume stay out |
| Merchant cash advances | Excluded | No federal data on this product |
| Small transactions | $1,000 or less excluded | Micro-credit drops out of the dataset |
| Pricing data | Removed | No cross-lender price comparison from this dataset |
| Other data points cut | Application method and recipient, denial reasons, number of workers, LGBTQI+-owned status | Denial reasons will not be public |
| First compliance date | January 1, 2028, with a 2028 good-faith grace period | First annual report is due June 1, 2029 |
Source: Baker Donelson, CFPB Finalizes New 1071 Small Business Lending Rule: Key Takeaways.
Next Move
Do not wait for federal data. Compare every offer on total repayment, not rate. Ask each lender to state the amount in writing.
Watch January 1, 2027, when voluntary demographic collection may begin. Watch June 1, 2029, when the first annual report is due.
Frequently Asked Questions
Per Baker Donelson, the rule was finalized May 1, 2026. It takes effect June 30, 2026, with a single compliance date of January 1, 2028.
No. The revised rule excludes merchant cash advances, agricultural lending and transactions of $1,000 or less. Covered products are loans, lines of credit and credit cards.
Institutions with at least 1,000 originations in each of the two preceding calendar years. Farm Credit System lenders are exempt.
External Resource
Baker Donelson: CFPB Finalizes New 1071 Small Business Lending Rule - Key takeaways
External Resource
Mayer Brown: CFPB Issues Final Section 1071 Rule - May 7, 2026
Compare offers on total repayment, not on rate.
Rev Boost Funding connects owners with partners that state terms as a multiple. Not a lender.
Affiliate partnerships present.
Check Capital Eligibility → You Finished This - Add as Preferred Source