Which scenario does NOT require an initial privacy notice?

The scenario involving Sally securing a small business loan does not require an initial privacy notice primarily due to the nature and context of the transaction. In many jurisdictions, financial institutions must provide an initial privacy notice for transactions that involve personal financial products or services, such as personal loans, credit cards, or savings accounts, which are explicitly designed for individual consumers. These notices inform consumers about how their personal information will be collected, used, and shared.

However, when it comes to small business loans, the transaction typically falls under commercial rather than personal finance regulations. Businesses are generally seen as more sophisticated entities that are expected to conduct their own due diligence regarding privacy and data usage. As such, the privacy requirements for transactions involving business entities differ from those involving individual consumers, leading to the conclusion that an initial privacy notice is not necessary for a small business loan in this context.