The California Legislature is considering amendments to the California Financing Law (the “CFL”), which requires most non-bank commercial lenders active in California to be licensed by the State’s Department of Business Oversight.  Senator Steve Glazer proposed new measures earlier this year that would require CFL lenders to provide standardized price disclosures to small-business borrowers (currently defined as loans of $500,000 or less).   The bill would apply to both closed-end and open-end commercial loans, as well as purchases of accounts receivable.  Although regulated banks are exempt, companies that have agreements with banks to fund such loans would not be exempt unless they qualify for their own exemption.  The Senate already adopted the bill, and it is pending a floor vote by the Assembly following clearance by its Banking and Finance Committee on June 26, 2018.
Continue Reading Proposal to Require New Disclosures by California Finance Lenders