Our bank has a subsidiary for some commercial financing such as equipment small ticket loans, floor plan financing, and asset-based lending. I know we need to file their loans on a separate register from the bank. Our question is do we combine the subsidiary and bank loans to determine when we must begin reporting or do the subsidiary loans get counted separately from the bank and thus, we could have 2 implementation dates?

Subsidiary loan activity is not combined with the parent for purposes of covered lender determination for 1071.

§ 1002.109 (2) Reporting by subsidiaries. A covered financial institution that is a subsidiary of another covered financial institution shall complete a separate small business lending application register. The subsidiary shall submit its small business lending application register, directly or through its parent, to the Bureau.

“The Bureau does not believe it is necessary to add to the rule a requirement to count originations at the parent or holding company level for the purposes of determining whether a financial institution has met the institutional coverage threshold. Final § 1002.105(b) defines a covered financial institution as a financial institution that originated at least 100 covered credit transactions for small businesses in each of the two preceding calendar years. The Bureau believes that the process and costs of establishing a new charter to avoid reporting data, along with other associated obligations in forming a new legal entity, will generally dissuade lenders from creating subsidiaries through whom to make small business loans specifically for the purpose of avoiding coverage under this final rule”. (530)