CA AB2116

Expands the California Consumer Financial Protection Law (CCFPL) to protect small businesses from abusive financial practices, in addition to its existing consumer protections

Requires persons offering commercial financing products to California residents to register with the Commissioner of Financial Protection and Innovation beginning January 1, 2028

Prohibits commercial financing providers and brokers from taking confessions of judgment or powers of attorney before a borrower defaults, and bars contract provisions allowing attachment or garnishment of recipient funds in depository accounts

Defines "small business" as entities with annual gross receipts of $16 million or less, and limits covered commercial financing transactions to those of $500,000 or less

Requires commercial financing brokers to display on their websites the average and maximum annual percentage rates for transactions they facilitated in the prior calendar year