Bill > HB2361

This bill amends existing Washington state law concerning small loans, which are short-term loans typically for smaller amounts. The key changes include increasing the maximum principal amount of a single small loan from $700 to $1,200, with this amount to be adjusted for inflation annually starting in 2027 based on the consumer price index for the Seattle area. The bill also clarifies that the maximum loan amount is the lower of $1,200 (adjusted for inflation) or 30% of the borrower's gross monthly income. Additionally, it maintains the existing limit of eight small loans per borrower within a 12-month period and adjusts the fee structure for loans over $500, with the first $500 of principal subject to a 15% fee and any amount above $500 subject to a 10% fee. The bill also specifies that a licensee cannot make a small loan to a borrower who is already in default on another small loan until that loan is paid off or two years have passed.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=2361&Year=2025&Initiative=false