Bill
Bill > HB639
PA HB639
PA HB639In preliminary provisions, further providing for definitions; and, in protective provisions, providing for truth in lending.
summary
Introduced
02/20/2025
02/20/2025
In Committee
02/20/2025
02/20/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending the act of January 30, 1974 (P.L.13, No.6), entitled "An act regulating agreements for the loan or use of money; establishing a maximum lawful interest rate in the Commonwealth; providing for a legal rate of interest; detailing exceptions to the maximum lawful interest rate for residential mortgages and for any loans in the principal amount of more than fifty thousand dollars and Federally insured or guaranteed loans and unsecured, noncollateralized loans in excess of thirty-five thousand dollars and business loans in excess of ten thousand dollars; providing protections to debtors to whom loans are made including the provision for disclosure of facts relevant to the making of residential mortgages, providing for notice of intention to foreclose and establishment of a right to cure defaults on residential mortgage obligations, provision for the payment of attorney's fees with regard to residential mortgage obligations and providing for certain interest rates by banks and bank and trust companies; clarifying the substantive law on the filing of and execution on a confessed judgment; prohibiting waiver of provisions of this act, specifying powers and duties of the Secretary of Banking, and establishing remedies and providing penalties for violations of this act," in preliminary provisions, further providing for definitions; and, in protective provisions, providing for truth in lending.
AI Summary
This bill amends the Loan Interest and Protection Law to introduce new definitions and requirements for commercial financing disclosure, specifically targeting small businesses. The bill defines a "provider" as an entity that offers commercial financing, including both direct lenders and nondepository institutions that arrange financing through online platforms, and defines a "small business" as a business with fewer than 500 employees. The bill mandates that providers disclose key financial details to small businesses before executing a financing transaction, including the total amount of funds, total dollar cost of financing, term length, payment method and frequency, prepayment policies, and the total cost of financing expressed as an annualized rate. Providers must obtain the small business representative's signature acknowledging these disclosures. The purpose of these provisions appears to be increasing transparency and protecting small businesses by ensuring they have clear, upfront information about commercial financing offers. The bill will take effect 60 days after its enactment, giving providers time to adjust their practices to comply with the new requirements.
Committee Categories
Business and Industry
Sponsors (13)
Kristine Howard (D)*,
Missy Cerrato (D),
Joe Ciresi (D),
Justin Fleming (D),
José Giral (D),
Roni Green (D),
Carol Hill-Evans (D),
Tarik Khan (D),
Maureen Madden (D),
Ed Neilson (D),
Chris Pielli (D),
Ben Sanchez (D),
Ben Waxman (D),
Last Action
Referred to Commerce (on 02/20/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...