Illinois State Rep Proposes Database of All Funded Deals

A Representative of the Illinois State legislature has introduced its own version of a commercial financing licensing bill. HB5587, which makes licensing sound like one is consenting to judgment and references the word subpoena 29 times, calls for a state-controlled commercial financing database that would require all licensed providers to upload their deals into it after they’re funded. The bill says that such a database would not be made public but would be used to monitor licensees, prepare industry reports, and to refer instances of illegal activity to law enforcement.

This proposal is aimed at non-bank providers of commercial financing rather than brokers or technology services, and it’s not limited to just loans. For instance, it says that providers would have to include “the amount of the receivables purchase price paid to the recipient and, if different from the purchase price, the amount disbursed to the recipient after any amount deducted or withheld at disbursement, if applicable” when submitting funded deals to the database.

Overall, the database component to this licensing bill somewhat overlaps with what will soon be required at the national level by the CFPB under the small business lending data collection rules. Are you prepared to comply with those rulex already?

This Illinois bill is new. You can read the full thing here.