Bill > A04889

This bill introduces a comprehensive regulatory framework for commercial finance licensing in New York State, establishing a new Article 9-A in the state's banking law. The bill requires businesses that provide commercial financing products (such as loans, purchase transactions, or leasing transactions) to small businesses to obtain a license from the state superintendent of banking. A commercial financing product is defined as any advance of funds to a business enterprise of $500,000 or less, with specific provisions for loans, account purchases, and leasing transactions. The licensing process involves submitting a detailed application, paying fees, demonstrating financial solvency, and maintaining at least $50,000 in liquid assets. The bill outlines strict requirements for licensees, including maintaining accurate records, submitting annual reports, and adhering to advertising and business conduct regulations. Exemptions are provided for certain entities like banking organizations, credit unions, and those making five or fewer commercial financing products per year. The legislation also establishes grounds for license suspension or revocation, imposes penalties for unlicensed operations, and gives the superintendent broad authority to investigate and regulate commercial financing providers to protect small businesses from predatory practices.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A4889