NJ Resurrects Small Business Finance Disclosure Bill

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New Jersey’s legislature has revived its small business finance disclosure bill. Having languished since last January, the Senate Commerce Committee quietly gave it a favorable report this past June.

New Jersey’s bill is similar to the law that New York is putting into effect on January 1st. As part of it, non-loan products will be required to calculate an APR even if one cannot be mathematically calculated by “estimating” one.

Brokers would be impacted too:

A broker who charges any fees or commission that would be paid by the recipient of the financing shall provide, at the time of extending a specific offer for a commercial financing transaction and in a form and manner prescribed by the commissioner, a written disclosure, in a document separate from the provider’s contract with the recipient, stating the following, if the information is not contained within the disclosure offered by the provider directly to the recipient:

(1) a list of all fees or commissions that would be paid to the broker by the recipient in connection with the commercial financing;

(2) the total dollar amount of charges listed pursuant to the bill;


(3) any increase to the annual percentage rate due to the charges listed above and the resulting dollar cost.

You can read the Senate Commerce Committee’s report here.

Last modified: July 28, 2021
Sean Murray

Category: Legal Briefs, Regulation

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