Bill > SF3348

This bill establishes comprehensive regulations for lenders providing loans to cannabis businesses in Minnesota, creating a new set of fair lending requirements. The bill defines key terms such as "borrower" (a prospective or current cannabis license holder), "lender" (excluding traditional financial institutions), and "loan" (financial assistance over $10,000 for cannabis business purposes). The legislation mandates that lenders must provide detailed disclosures to borrowers at least five days before executing a loan contract, including specific financial information like interest rates, finance charges, payment schedules, and total loan amount. Lenders are prohibited from making false or misleading advertisements about loan terms and must provide written disclosures in the language used to negotiate the transaction. The bill also requires lenders to give borrowers notice and a reasonable opportunity to cure a default before taking enforcement actions. Critically, if a lender violates these provisions, the loan becomes void, and the borrower is not obligated to repay any amounts owed. These regulations will take effect on August 1, 2025, and will apply to loans offered or made on or after that date, aiming to protect cannabis business owners from predatory lending practices.

Business and Industry

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3348&ssn=0&y=2025