Bill > HR3244

This bill, known as the Capital Access for Small Businesses Harmonization Act (CASH Act), requires providers of factoring agreements to provide clear, detailed written disclosures to small businesses before entering into factoring facility agreements, specifically for transactions under $500,000. The disclosure must include key financial details such as the difference between a claim's face value and the amount paid, a comprehensive list of fees, reserve terms, agreement duration, and a concrete example demonstrating how a $10,000 transaction would be processed. A factoring transaction is defined as the sale of accounts receivable for goods or services already provided but not yet paid, with the account debtor's payment being the primary repayment source. The bill explicitly excludes loans or advances from this definition and establishes that these transactions are considered a true sale. Additionally, the legislation preempts state or local governments from imposing additional or conflicting disclosure requirements, ensuring a uniform national standard for these financial agreements. The bill's definitions ensure that only providers engaged in interstate commerce are subject to these disclosure requirements, and the term "small business concern" follows the existing definition in the Small Business Act.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/3244/all-info