Small Dollar Loan Certainty Act

HR 8356, the Small Dollar Loan Certainty Act, creates a "safe harbor" for banks and credit unions offering small-dollar loans (up to $3,500) that meet specific requirements. Key provisions include requiring repayment terms over 45 days, fully amortized payments, prohibiting loan rollovers or multiple active loans, banning prepayment penalties and overdraft fees, and limiting balloon payments to double the size of other payments. The bill directly affects lenders (banks, credit unions, and their contractors) and consumers receiving these loans by reducing legal liability for compliant lenders while imposing clear structural rules on loan products. It does not change existing disclosure or underwriting requirements but explicitly protects covered entities from civil penalties or private lawsuits if they follow these new standards.