HB 5211 Connecticut House · 2026 Regular Session

AN ACT CONCERNING COMMERCIAL FINANCING.

HB 5211 requires providers offering sales-based commercial financing (repayments tied to a business's sales/revenue) to disclose four specific details to recipients: the total financing amount, disbursement amount (excluding finance charges), finance charge, and an estimated annual percentage rate (APR) based on projected sales. This applies to financing under $250,000 not intended for personal use, directly affecting small businesses and the providers (like brokers or non-bank lenders) offering this financing. The APR must be calculated using either historical sales data or an opt-in method, with providers notifying the Banking Commissioner of their chosen method. Banks, credit unions, and certain large lenders are exempt from these requirements. The bill takes effect October 1, 2026.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

House Passage

Apr 2026

Senate Passage

Governor

Introduced Feb 18, 2026 Last action May 6, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → BA Joint Favorable Substitute · 3 edits

MINOR

The bill was reclassified from a 'Raised Bill' to a 'Substitute Bill' indicating it has been amended and approved by the Banking Committee. The most significant substantive change involves renaming the methods used to calculate financing costs: the 'historical method' and 'opt-in method' were replaced with the 'safe harbor method' and 'underwriting method'. This likely simplifies compliance by establishing clearer, standardized rules for how lenders estimate repayment terms and project sales volume.

Scope change

The scope of the bill remains focused on commercial financing regulations, but the specific mechanisms for calculating financial metrics have been updated to new terminology.

DEFINITION

Renamed the 'historical method' to the 'safe harbor method' and the 'opt-in method' to the 'underwriting method' for calculating estimated annual percentage rates.

Updated the definition of 'finance charge' to explicitly include charges that are conditions of financing, aligning the text with federal regulations.

TECHNICAL

Changed the bill title from 'Raised Bill' to 'Substitute Bill' and updated the page header to reflect the new status.

Floor votes · House Apr 27, 2026

How they voted

142–5

Passed · 3 other

Total votes 150

Apr 27, 2026

D Democratic101

99 Yea 2

98% Yea

R Republican49

43 Yea 5 Nay 1

87% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 6, 2026

Upper · Passed

SEN. ADOPTED HO. AMEND. SCH. A

upper

Apr 27, 2026

Lower · Passed

HOUSE PASSED, HOUSE AMEND. SCH. A

lower

Apr 27, 2026

Amended

HOUSE REJECTED HOUSE AMEND. SCH. B

lower

Apr 27, 2026

Lower · Passed

HOUSE ADOPTED HOUSE AMEND. SCH. A

lower

Apr 10, 2026

Lower · Passed

Joint Favorable

lower

Apr 7, 2026

Lower · Passed

REF. BY HOUSE TO COMMITTEE ON Judiciary

lower

Mar 10, 2026

Lower · Passed

Joint Favorable Substitute

lower

Feb 18, 2026

Committee

REF. TO JOINT COMM. ON Banking

lower

88 primary · 0 co-sponsors

Sponsors

Role

Legislator

Party

State

District