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Ivan Young: There's an act to
amend the Financial Services Law

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in relate to requiring certain
providers that extend specific

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terms of commercial financing to
recipient to disclose certain

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information about the offer to
the recipient.

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Senator George Borrello: May I
speak on the bill?

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Senator Sanders: Senator Thomas.

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Senator Kevin Thomas: No that's
senator Borello.

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Senator Sanders: From where I
sit, they sound so alike.

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Senator Borello. why don't we
have Senator Thomas explain it

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first? And then he may answer
your question.

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Senator George Borrello: Yes.

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Senator Kevin Thomas: Alright.
Thank you so much. Alright. So

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the reason why I introduced this
bill is because non bank, online

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lenders are the mainstream
alternative providers to

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financing small businesses,
right. And these online lenders

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vary significantly in the type
of information presented to the

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customer. So what this bill asks
them to do is make terminology

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standard. So customers who are
not really sophisticated, get

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all the information they need to
make an informed decision. So

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what this bill says is our entry
is going to be a disclosure box

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with the total cost of capital,
the term payment frequency APR,

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average payment amount, basic
information about prepayment,

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this information presented as a
standard format would be very

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useful for product comparisons.
Alright, so that's basically the

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crux of the bill.

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Senator Sanders: Thank you. So
Senator Barello, I believe.

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Senator George Borrello: Yes,
thank you, Mr. Chairman. Just I

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understand the intent of this
bill. But as I've said before,

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as a small business owner, in
that we often in this committee

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try to treat commercial vehicles
the same as we treat, you know,

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things that are geared toward
consumer loans. And it also,

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once again, we're looking at
state chartered institutions now

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that are only they'll be applied
to in this case, and it's going

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to create a situation where they
are unfairly, you know,

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competing, and I just there was
a number of issues that were

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brought forth on this bill,
technical issues that I think

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create unintended loopholes, you
know, you've got some, some

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language that that, you know,
wasn't really clear on things

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that I think is going to create
issues for a lot of folks,

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including those that are gonna
be negatively impacted. But the

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bottom line is, is that fast,
flexible loans for small

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businesses are critically
important, I can tell you that.

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And when you start talking about
doing things that are going to,

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you know, include, for example,
disclosure calculations,

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requirements that are not
accurately reflecting the true

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cost of financing, it creates an
unfair level of competition,

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particularly with those non
state chartered institutions.

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There was use of the word double
dipping in this legislation,

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which doesn't really have a
definition, I think I understand

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what it means. But but it's
really not a technical legal

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definition. And there were a lot
of, you know, a lot of other

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issues that were brought forth
by organizations like Pay Pal

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and the Small Business Finance
association that I don't think

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were addressed. So while I agree
with the intent. Make sure

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people are informed. I don't
want to see people misinformed.

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And I certainly don't want to
see more state chartered

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institutions forced out of New
York, because of, you know, a

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different standard than those
that are federally chartered or

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chartered in other states. So
that's why I respectfully am

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voting no.

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Senator Kevin Thomas: So to a
number of those issues that

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Senator Borrello brought up the
technicalities in the bill, not

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even the trade associations who
are experts could agree on

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certain definitions there. So
once this moves, you know, we're

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going to have, you know, some
negotiations with DFS, and we'll

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go from there. But again, given
that we are going through this

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pandemic, right, a lot of small
businesses, like yourself, I

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mean, you're a former small
business owner, you probably

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still are, it's imperative that
you get back on your feet. And

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in order to do that, I mean,
Sandra, you are probably one of

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the most sophisticated business
owners, but there are mom and

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pop owners out there that just
don't understand what the

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different, you know, like jargon
is, you know, if they go to one

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lender online, and then try to
compare what another lender is

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offering, we need that kind of
standard language. And that's

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what this bill does. I mean,
with the technicalities, we can

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work on that but the true
intention of this bill is to

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make sure that our business
owners get back on their feet,

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and they are well informed when
they sign off on that extension

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of credit.

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Senator Sanders: Again, I think
we agree on that. I think what

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you're going to do is you're
going to reduce the number of

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credit opportunities, because of
the way this is drafted. And

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that's my concern, because right
now, because of the pandemic, I

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can tell you, that many business
owners are tapping into whatver

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credit they can get, your lines
of credit are tapped out in most

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cases. You know, they're trying
to get federal assistance. Not

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everyone's getting it. The
state's really offered zero

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assistance to our small
businesses, unfortunately. So I

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think it's important that we
before we start doing things

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that impede our ability to get
credit as small business owners,

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we should definitely try to do
something to help them for

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that's why I'm again, I'm
fundamentally opposed to this,

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but I appreciate the the intent,
Senator Thomas, and then they

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also just want to point out
that, in the Chairman's defense,

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you and I do sound very similar
on the phone. So I think.

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Senator Kevin Thomas: We are a
parking lot neighbors. So you

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know.

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Senator George Borrello: I'm
there before you by the way.

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Senator Sanders: I'm glad that
my my PE credentials are still

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intact. PC rather credentials
are still in fact, and I

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certainly appreciate that, as I
have appreciated the the

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conversations. Where's the
points on both sides? Are there

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any more questions, comments or
concerns from anyone else?

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Timothy Kennedy: I'll move the
bill.

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Senator Sanders: If not,
committee moves. Is there a

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second?

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Senator Kevin Thomas: Senator
Thomas second.

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Senator Sanders: Alright. Well,
if you say Senator Borello,

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second. All in favor say aye.

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Unknown: Aye.

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Senator Sanders: All opposed say
nay.

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Unknown: Nay. Nay.

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Senator Sanders: Okay, I'll slow
it down.

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Daphne Jordan: I'm without rec
and it's really for all the

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reasons that Senator Borello
spelled out. I hope some of

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those definitions are clarified
and that you can work it out the

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goal is admirable.

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Senator Sanders: Well put, you
have your your numbers, Mr.

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Young?

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Ivan Young: Yes, sir. the bill
passed.

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Senator Sanders: Your counts?

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Ivan Young: They reported.