The Georgia legislature recently sent SB 90 (Act) to Governor Kemp for signature. The Act aims to amend Chapter 1 of Title 10 of the Georgia Code to require commercial financing disclosures, which apply to providers involved in more than five commercial financing transactions in the state annually. Exemptions include federally insured financial institutions and transactions above specific monetary thresholds.
Disclosure requirements include the total amount of funds provided, disbursed, and paid to the provider, the total dollar cost, the manner and frequency of payments, and any prepayment costs or discounts.
Broker requirements prohibit advance fee assessments, false or deceptive representations, and mandate third-party payments for actual services.
The Act permits the Attorney General to receive and act on complaints, and provides for monetary penalties, but no private right of action.
This new law will go into place by May 8th unless the Georgia governor vetoes it. Even if the Governor does not sign the law by May 8th, it will still go into effect.
The disclosure requirements are applicable to all commercial financing transactions completed on or after January 1, 2024.