summary
Introduced
02/07/2025
02/07/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Small Business Financing Transparency Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.
AI Summary
This bill creates the Small Business Financing Transparency Act, which establishes comprehensive regulations for commercial financing providers and brokers in Illinois. The bill requires providers of various types of commercial financing (including sales-based financing, closed-end financing, open-end financing, and factoring transactions) to disclose detailed information to recipients, such as total financing amount, finance charges, repayment terms, payment schedules, potential fees, and collateral requirements. Providers and brokers must register with the Department of Financial and Professional Regulation, paying a $2,500 annual registration fee, and provide specific information about their business operations. The Secretary of Financial and Professional Regulation is given extensive powers to investigate complaints, issue cease and desist orders, impose civil penalties up to $10,000 per violation (or $20,000 for willful violations), and take legal action against non-compliant entities. The law aims to protect small businesses by increasing transparency in commercial financing transactions, with all disclosure forms required to include instructions on how to file complaints. The registration and disclosure requirements will not take effect before January 1, 2026, and the law specifically exempts certain types of financial institutions and transactions from its provisions. Violations of the Act are considered unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, providing additional consumer protection.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 04/11/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3477&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3477eng.htm |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3477.htm |
Loading...