Commercial Financing - Small Business Truth in Lending Act

HB 693, the "Small Business Truth in Lending Act," regulates commercial financing for small businesses by requiring lenders to provide clear disclosures about costs and terms. It directly affects small businesses seeking loans (not personal loans) and non-bank lenders offering commercial financing, excluding banks, credit unions, large loans over $2.5 million, and real estate-secured deals. Key provisions mandate standardized calculations of annual percentage rates (APR), clear disclosure of finance charges (like fees and interest), and specific repayment terms for all commercial financing types, including equipment loans, factoring, and sales-based financing. The bill defines "commercial financing" broadly to cover loans where proceeds aren’t used for personal/family purposes, ensuring borrowers understand costs before signing.