RBFC updates
If you aren't subscribed to the RBFC newsletter, you should be, and here are a few regulatory nuggets from today's newsletter:
General State Bill Tracking
The majority of the association’s focus states are currently in session, as well as Puerto Rico. Adjourned states include Florida, Texas, Utah, and Virginia. Updates on relevant introduced bills that RBFC is tracking below:
California (1/5/26 - 8/31/26)
AB 2116: Expand the purposes of the CCFPL to include the protection of small businesses from abusive financial practices, as specified. The bill would require the department to prescribe rules regarding registration requirements applicable to covered persons seeking to offer or provide commercial financing products, as defined and specified. The bill would, commencing January 1, 2028, prohibit a person from engaging in the business of offering to provide or providing commercial financing products without first registering with the commissioner, as specified. The bill would impose various duties on commercial financing providers and brokers, including, among other things, prohibiting the taking of a confession of judgment or power of attorney at any time before a default, as specified. The bill would make various conforming changes.
Connecticut (2/4/26 - 5/6/26)
HB 5211: To redefine “commercial financing”, require commercial financing providers to disclose estimated annual percentage rates and revise and establish certain requirements applicable to commercial financing contracts.
Illinois (1/14/26 - 5/31/26)
HB 744: Creates the Small Business Financing Transparency Act. Requires APR disclosure for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Includes implementation of a database for only sales-based financing transactions in the State of Illinois.
HB: 3477: Creates the Small Business Financing Transparency Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing.