Most private real estate lenders can relax, but should still check. On 1 May 2026, the Consumer Financial Protection Bureau finalized a heavily revised version of its Section 1071 small business lending data rule under Regulation B. The rule took effect on 30 June 2026, with a single compliance date of 1 January 2028 (Mayer Brown).
What changed
| Item | 2023 rule | 2026 rule |
|---|---|---|
| Lender coverage threshold | 100 covered originations in each of two prior years | 1,000 covered originations in each of two prior years |
| Small business definition | Gross revenue of $5 million or less | Gross revenue of $1 million or less |
| Compliance date | Tiered by volume | 1 January 2028 for everyone; first filing due 1 June 2029 |
| Excluded products | Narrower list | Adds merchant cash advances, agricultural loans and loans of $1,000 or less |
Source: Mayer Brown.
Does it reach private real estate lenders?
Section 1071 covers business-purpose credit to small businesses, which can include loans to entities secured by real estate. But a lender is covered only if it originated at least 1,000 covered credit transactions to small businesses in each of the two preceding calendar years. Most private real estate lenders fall well below that. Loans that are reportable under the Home Mortgage Disclosure Act are also excluded.
Larger platforms making many small-balance loans to investor entities should run the count. The rule allows an optional 2025–2026 look-back to determine initial coverage.
What to do
- Count small business originations for 2025 and 2026
- If you are near 1,000, start planning data collection systems for 2028
- Remember that Regulation B's anti-discrimination rules, including spousal guarantee limits, apply regardless of 1071 coverage (Article 12)
This content is general information for industry professionals and is not legal, tax or financial advice. Laws change and apply differently to each transaction; obtain advice from qualified counsel in each relevant jurisdiction. Legal counsel to the Cross-Border Private Lenders Association: Jasmine Daya & Co. Questions: info@cbpla.com