Up Next On The New York Legislative Agenda: Funder, Lender, and Broker Licensing

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Fall AlbanyNew York State Senator James Sanders Jr. has introduced S6688, a commercial financing licensing bill that would require persons or entities engaging in the business of making or soliciting commercial financing products in New York state to obtain a license from the New York Department of Financial Services. The bill covers small business lenders, merchant cash advance companies, factors, and leasing companies for transactions under $500,000.

The bill likely won’t see any activity until the New York legislative session resumes in 2020, at which point it could be amended or killed.

As currently drafted, applicants for a license would be subject to a criminal background search and be required to submit their fingerprints for a review by agencies such as the FBI. In addition to paying an application fee, applicants would be required to maintain liquid assets of $50,000.

Sanders, the bill’s sponsor, is the Chairman of the banking committee. You can read the full text of the bill here.

Last modified: September 11, 2019
Sean Murray


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