New Jersey Tries Again With a Small Business Finance Disclosure Bill

For the third year in a row, New Jersey has a small business finance disclosure bill on the table. S233 is the latest iteration of S2262 from prior years.

Introduced by State Senator Troy Singleton, the proposed law would impose disclosures on loans, factoring, and merchant cash advances on transactions less than $500,000.

In addition to APR requirements, brokers who arrange such financing would be required to disclose their fee to prospective applicants separately from the financing contract and prior to the consummation of the transaction.

Singleton is a Democrat. The Democrats in New Jersey control the Senate, Assembly, and Governor’s office.