Small Business Financing Disclosure Act of 2023

The Small Business Financing Disclosure Act of 2023 requires lenders to clearly disclose the true cost of business loans and financing to small businesses before they agree to borrow. It mandates specific, plain-language disclosures including the annual percentage rate (APR), total finance charges, payment amounts, term length, and prepayment costs - ensuring small businesses can compare options without hidden fees. The bill also prohibits lenders from charging extra fees when refinancing a loan without providing a tangible benefit to the small business. These rules apply to business financing under $2.5 million used for business purposes (not personal), with implementation requiring new Consumer Financial Protection Bureau rules within two years and full effect three years after enactment.