Bill > S0347

This bill introduces the "Commercial Financing Disclosure Act" in South Carolina, which establishes new regulations for commercial financing transactions starting January 1, 2026. The act defines various terms related to business financing, such as "commercial financing transaction" (which includes commercial loans, accounts receivable purchases, and open-end credit plans) and applies to providers who consummate more than five commercial financing transactions in the state annually. The bill requires providers to give businesses a detailed written disclosure before finalizing a transaction, including information about the total funds provided, total funds to be repaid, payment terms, and any prepayment costs or discounts. Brokers are prohibited from charging advance fees, making false representations, or engaging in deceptive practices. The Attorney General has exclusive enforcement authority, with potential fines of $500 per incident (up to $20,000 total) for initial violations and $1,000 per incident (up to $50,000 total) for subsequent violations. The law explicitly does not create a private right of action and does not invalidate the underlying financing transaction if a violation occurs. Certain types of financial institutions and transactions are exempt, including those secured by real property, transactions over $500,000, and those involving federally insured depository institutions.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=0347&session=126&summary=B