Regulation Z is the CFPB rule implementing the Truth in Lending Act. It sets standardized disclosure requirements — including APR calculation methodology — for consumer credit products. It does not apply to commercial or business-purpose financing.
Regulation Z (codified at 12 CFR Part 1026 — https://www.consumerfinance.gov/rules-policy/regulations/1026/) translates the Truth in Lending Act's statutory requirements into operational rules. It specifies exactly how lenders must calculate APR, what disclosures must appear on credit agreements and periodic statements, when disclosures must be delivered, and how consumers can exercise rescission rights on certain loans. For business owners, Reg Z is most relevant for understanding what protections don't apply to their business credit products. Personal credit cards, home equity loans, and personal auto loans come with Reg Z's full disclosure regime. Business credit cards, commercial lines of credit, and small-business loans do not — they're exempt under the TILA/Reg Z commercial-purpose exclusion. This disclosure gap matters when comparing offers. A personal loan from a bank that falls under Reg Z will show a standardized APR that accounts for fees and timing. A business loan might quote rate, factor rate, cents-on-the-dollar, or any number of conventions — and the federal government doesn't require the lender to convert that into a comparable APR. Knowing which disclosure regime applies helps business owners recognize when they need to do the conversion math themselves. The CFPB's Regulation Z official text and commentary (https://www.consumerfinance.gov/rules-policy/regulations/1026/) is the authoritative source for APR calculation methodology and disclosure requirements. The FDIC's consumer compliance manual (https://www.fdic.gov/regulations/compliance/manual/) includes examination procedures for Reg Z compliance at depository institutions.
Generally no for small-business credit cards. Business credit cards are exempt from most Reg Z provisions because they're commercial-purpose credit. The CARD Act of 2009 extended some consumer-card protections to business cards with fewer than 100 employees, but the APR disclosure standards of Reg Z still primarily apply to consumer products.
For certain consumer loans secured by a primary residence (HELOCs, refinances), Reg Z gives the borrower 3 business days after closing to rescind the transaction. This only applies to consumer transactions — not business loans, even if backed by a personal residence used in a business context.
Reg Z requires APR to reflect the total cost of credit over a year, including the stated interest rate plus all mandatory fees divided into the financing amount, expressed as an annualized rate. The goal is a single comparable number across products with different fee structures and payment schedules.