Article summary
The May 1, 2026 final rule excludes MCA transactions from covered credit transactions under Regulation B subpart B, with an initial compliance date of January 1, 2028.
Article content
The CFPB published a revised small-business lending data rule on May 1, 2026.
The rule became effective June 30, 2026 and sets an initial compliance date of January 1, 2028.
What the rule changes The final rule excludes merchant cash advances, agricultural lending and small-dollar business credit of $1,000 or less from covered credit transactions.
The boundary includes a transaction of exactly $1,000.
For this rule, an MCA is an agreement under which a small business receives a lump sum in exchange for the right to receive a percentage of future sales or income up to a ceiling amount.
The covered-financial-institution origination threshold increases from 100 to 1,000 covered credit transactions in each of two consecutive years.
The small-business revenue threshold falls from $5 million to $1 million, subject to the regulation's detailed definitions and transition provisions.
Transaction exclusion is not a provider-wide exemption A company making only excluded MCA transactions would not report those transactions under this rule.