In the Official Interpretation, there is a coverage discussion.

Coverage. In determining which rules in this paragraph apply to a given business credit application, a creditor may rely on the applicant's assertion about the revenue size of the business. (Applications to start a business are governed by the rules in § 1002.9(a)(3)(i).) If an applicant applies for credit as a sole proprietor, the revenues of the sole proprietorship will determine which rules govern the application. However, if an applicant applies for business credit as an individual, the rules in § 1002.9(a)(3)(i) apply unless the application is for trade or similar credit.

What is the different between a sole proprietor and an individual in this comment?
My scenario is three individuals, that combined have more than $1M in annual gross revenues (crop farmers) and they are applying jointly for a loan to buy agricultural real estate. Are they individuals or sole proprietors?

We are looking at our decision timeframes and trying to figure out whether they would then be covered under 1002.9(a)(3)(i) which points to the 30 day timeframes under 1002.9(a)(1&2) or would they fall under 1002.9(3)(ii) for business applicants over $1M?

I think you are mixing things up.

You have three individuals applying for a loan. This is not going to be a sole proprietorship, as it involves three individuals. It matters not what else they are involved with. So, this is currently three individuals acting in some sort of partnership but applying individually. I am not sure why they have not formed some sort of entity.,

Sorry for the delayed response here.
Would the answer change if there was only one individual applying? Would they be considered a sole proprietor?

We really did get this request and I was wondering about the $1M threshold which you have answered above. My second reason for asking the question is that, under the current regulation, there do seem to be differences between an individual and a sole proprietor, noted above. However, I was given information that under the proposed SBA 1071, individuals were going to be the same as sole proprietors. All would be reportable under a covered loan.

I'm confused and was hoping that you could clarify who are considered individuals and who are sole proprietors under the current regulation and whether it is expected to change under the proposed regulation.