Hi all, here are a few updates we get because we are part of the RBFC. It's worth your time to inquire about becoming a member to get the full information.
California: (1/6/25 - 9/12/25)
AB 1166: Fair Debt Settlement Practices Act
The bill expands protections for consumer debt settlement practices to commercial debt settlement practices. We are monitoring as the bill makes its way through the legislature.
A bill to implement a registration regime for commercial financing. The bill had a hearing on 4/7/25 where RBFC testified that we are seeking amendments to the language. The bill scheduled for hearings in the Senate Committee on Appropriations on May 5.
SB 362: Commercial financing: Disclosures
A bill to examine and modify aspects of the CA commercial financing disclosures. The bill had a hearing on 4/2/25 where RBFC testified that we are seeking amendments to the language. The bill scheduled for hearings in the Senate Committee on Appropriations on May 5.
Illinois: (1/8/25-5/31/25)
SB 260 - Small Business Financing Transparency Act
Bill requiring APR disclosure for non-bank commercial financing products and the formation of a commercial financing base were reintroduced. We are monitoring for hearing activity.
HB 3477 - Business Truth in Lending Act
Bill requiring disclosures for non-bank commercial financing products and protections against broker practices (no APR). The bill was heard on 3/18/25 and was passed out of committee. The bill currently is in the House as additional amendments are being considered.
New Jersey: (1/14/25 - n/a)
S 1397/A 865 - Requiring certain disclosure by providers of commercial financing (including APR disclosure)
In December, the legislature amended the bill to require providers of revenue/sales-based financing to disclose APR along with the other disclosure provisions previously included in the bill. The bill in its amended form currently remains in the Senate. If the bill passes the Senate, it will head to the Assembly for further deliberations.
Texas (1/14/25 - 6/2/25)
SB 2677/HB 700: Relating to disclosures for certain sales-based financing transactions.
HB 700 was heard on April 13th and reported out as a substitute with amendments on April 24th. The Senate version of the bill SB 2677 was heard in committee on 5/1/25 and is pending passage of the committee.
