Finastra SBDC Solution FAQ
Learn about Finastra's approach to compliance with the SBDC rule. Available within the Compliance Reporter solution, the SBDC module was designed with flexibility in mind.
LEGAL UPDATE: On June 18, 2025, the CFPB issued a notice of its intent to issue an interim final rule extending the small business data collection rule compliance deadlines by approximately one year. The interim final rule requires small business data collection under ECOA as of July 1, 2026 (Tier 1 financial institutions), January 1, 2027 (Tier 2 financial institutions), and October 1, 2027 (Tier 3 financial institutions). The interim rule allows institutions to determine their coverage under the rule based on loan volume using either their small business originations in 2022 and 2023, in 2023 or 2024, or in 2024 and 2025. The interim rule still allows covered institutions to collect the full 1071 small business data set (including the collection of protected demographic information) 12 months prior to their new compliance dates.
Regulation B requires that collection of applicant demographic information occur early in the application process before a credit decision is made on the application. For many commercial lenders, this occurs before transaction information is entered in a loan origination system (LOS). The SBDC module was designed with flexibility in mind, providing processors or loan officers with a simplified data collection screen where they can enter early application data in a cloud-native stand-alone solution.
