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;

and

(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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