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On May 1, Georgia signed SB 90 to become the latest state to require disclosures for small-business financing (see our prior posts on this here, here, and here). Providers of commercial financing in the amount of $500,000 or less who conduct more than five transactions in Georgia annually will be required to comply with the new law. Among other exclusions from the legislation, it does not cover real-estate secured loans, purchase-money loans, motor-vehicle floor plan financing, credit extended in connection with the sale of the creditor’s goods or services, or if the lender makes 5 or fewer such loans in any 12-month period. The legislation will go into effect on January 1, 2024.…

Continue Reading Georgia Introduces New Commercial Financing Disclosure Requirements

On March 28, the CFPB issued a preemption determination that that TILA does not preempt commercial lending disclosure regulations enacted in California, New York, Utah, and Virginia (we discussed state commercial financing disclosure laws in previous posts here, here, and here). After analyzing public comments on its preliminary determination about whether New York’s commercial financing disclosure law is not preempted by TILA, the CFPB reiterated there is no preemption because the states’ statute require lenders to include disclosures in their commercial financing transactions with businesses, and commercial financing transactions are not covered by TILA.…

Continue Reading CFPB: TILA Does Not Preempt State Commercial Financial Disclosures

On February 1, NY DFS announced the adoption of the final regulation implementing the New York State Commercial Finance Disclosure Law (CFDL) (N.Y. Fin. Serv. Law §§ 801 to 812). The regulations require companies that offer commercial financing less than or equal to $2.5 million (providers) to make standardized disclosures about the commercial financing’s credit terms to recipients of the commercial financing (recipients). The final regulations were effective February 1, 2023, and the compliance date for the final regulation is August 1, 2023 (see our previous post on the regulations here).…

Continue Reading New York Adopts Final Commercial Financing Disclosure Regulations

On September 14, the New York Department of Financial Services (NYDFS) published a notice of proposed rules under New York’s Commercial Financing Disclosure Law (CFDL) (we discussed this previous rulemaking in a blog post here). Under the CFDL, commercial finance companies are required to give consumer-style loan disclosures to potential recipients when a specific offering of finance is extended for certain commercial transactions of $2.5 million or less. We note some items in particular from the latest proposed rule:
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Continue Reading New York Publishes Proposed Rules on Commercial Financing Disclosures

Two weeks after the DFPI set a Dec. 9 effective date for its long-threatened commercial financing disclosure requirement (we discussed these regulations in a previous bog, here), the DFPI issued proposed commercial UDAAP and annual reporting regulations likely impacting many of the same companies. Specifically, the proposed regulations would apply to providers of commercial financing or other financial products and services to small businesses, nonprofits, and family farms, and would (i) expand the DFPI’s UDAAP authority, and (2) impose annual reporting requirements on covered providers (we briefly discussed these proposed regulations in a previous blog post here).
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Continue Reading Proposed California Commercial UDAAP and Annual Reporting Regs to be Promulgated Under California Consumer Financial Protection Law

On June 24, the California Department of Financial Protection and Innovation (DFPI) issued proposed regulations implementing certain provisions of the California Consumer Financial Protection Law (CFPL) related to commercial financial products and services. Written comments on the proposed regulations are due by August 8.
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Continue Reading DFPI Issues Proposed Rules for Commercial Financing

On June 9, the California Office of Administrative Law (OAL) approved the Department of Financial Protection and Innovation’s (DFPI) proposed commercial financing disclosure regulations issued pursuant to SB 1235. The regulations will become effective on December 9, 2022, and the final regulatory text can be found here.
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Continue Reading California Approves Commercial Financing Disclosure Regulations

On October 20, the New York Department of Financial Services (NYDFS) issued proposed rules under New York’s Commercial Financing Disclosure Law (CFDL) (See S5470-B, as amended by S898).  Under the CFDL, commercial financing providers will be required to give consumer-style loan disclosures to recipients at the time a specific offering of finance is extended for certain commercial transactions of $2.5 million or less.  The public comment period on the proposed rules are due by December 19, 2021.
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Continue Reading NYDFS Issues Proposed Rules to Implement New Commercial Financing Disclosure Law