NJ Legislature Aims to Classify Merchant Cash Advance as a Loan in New Disclosure Bill

S2262 in New Jersey, a bill to require disclosures in small business lending, was amended this afternoon to define merchant cash advances as small business loans for the purposes of disclosure.

Banks and equipment leasing companies are exempt from the bill.

You can listen to the hearing here. Debate on S2262 begins at the 6 minute, 12 second mark.

The bill’s author (image at right) is Democratic Senator Troy Singleton who represents New Jersey’s 7th legislative district.

Testifying on Monday’s hearing against the bill were Kate Fisher of the Commercial Finance Coalition and PJ Hoffman of the Electronic Transactions Association.