With Clock Ticking, Members of the Commercial Finance Coalition Journeyed to the New York State Capitol

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NY CapitolWith less than a month to go until New York State’s budget deadline, members of the Commercial Finance Coalition (CFC) traveled to Albany, NY last week to address a vague and confusing licensure proposal put forth by Governor Cuomo. According to the CFC, nobody from the New York Department of Financial Services, the governor’s office or the state legislature had contacted any of their members prior to putting the language in the budget that they suspect could lead to catastrophic consequences. So on very short notice, they packed their bags and went up to Albany to tell their story to as many legislators as they could.

“It could destroy the industry if the worst comes to fruition,” declared Robert Cook, a partner at Hudson Cook LLP, who was speaking in reference to the proposal. The industry not only employs thousands of people in New York State but also provides much-needed capital to small businesses there. The CFC says that their members injected more than $50 million into New York businesses just last year alone.

Several law firms who have written about the proposal have used words like could, may and likely to explain what will happen, in part because it seems as though no one’s really sure. CFC members worry that the proper research hasn’t been done, especially when there hasn’t been any engagement with them. “They should allow all the stakeholders to have their voices heard,” said Dan Gans, CFC’s executive director.

As the clock ticked down, the CFC’s two-day effort in the capitol building played out like a scene from a movie.

Are you aware of Part EE of the TED Bill?

This is what we do…

No, nobody from the Department of Financial Services has even talked to us

No, we’re not kidding

And on it went…

Gans says the CFC is looking for additional companies in the small business financing industry to support their efforts. He’ll be at the LendIt Conference. “I would be happy to meet with anyone interested in joining the CFC and helping us fight this misguided policy that is also attending,” he said. He can be contacted at dgans@polariswdc.com.

The budget deadline in New York State is March 31st.

Below, members of the Commercial Finance Coalition with NY Senate Majority Leader John Flanagan (middle)

Commercial Finance Coalition with NY Senate Majority Leader John Flanagan

Read an analysis of the proposal written by attorneys at Hudson Cook, LLP

Last modified: March 5, 2017
Sean Murray


Category: Regulation

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