Bill > HF2987

This bill establishes comprehensive fair lending regulations specifically for cannabis businesses in Minnesota, creating new legal protections for borrowers seeking financial assistance. The bill defines key terms such as "borrower" (a cannabis license holder or applicant), "lender" (excluding traditional financial institutions), and "loan" (financial assistance over $10,000). Lenders must provide detailed, written disclosures at least five days before executing a loan contract, including the interest rate, finance charges, payment schedule, total amount financed, and potential balloon payments. The bill prohibits false or misleading loan advertisements and requires lenders to provide notice of default and a reasonable opportunity to cure before taking enforcement action. Critically, if a lender violates these provisions, the loan becomes void, and the borrower is not obligated to repay any amounts. These regulations aim to protect cannabis businesses from predatory lending practices by ensuring transparency, fair terms, and clear communication. The law will take effect on August 1, 2025, and will apply to loans offered or made on or after that date.

Business and Industry

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2987&ssn=0&y=2025