Concerning the maximum principal amount of small loans.

HB 2361 increases the maximum principal amount for small loans in Washington from $700 to $1,200 (adjusted for inflation based on the Seattle-area consumer price index), while also limiting loans to 30% of a borrower's gross monthly income - whichever is lower. The bill caps total interest and fees at 15% for the first $500 of a loan and 10% for amounts over $500, and restricts borrowers to no more than eight small loans in any 12-month period. It prohibits lenders from making new loans to borrowers who are in default on existing small loans until the default is resolved or two years pass. The law directly affects small loan licensees and borrowers seeking short-term credit in Washington.