CA SB728

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

Requires registration with the Commissioner of Financial Protection and Innovation for anyone offering or providing commercial financing products to California residents, effective January 1, 2027

Prohibits commercial financing providers and brokers from taking confessions of judgment or powers of attorney before a borrower defaults on their agreement

Bans contract provisions that allow providers to automatically attach or garnish recipients' bank accounts, and prohibits non-disclosure clauses that prevent recipients from sharing information about their financing terms

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

Applies to commercial financing transactions of $500,000 or less and defines commercial financing brokerage services to include activities like transmitting sensitive financial data and participating in financing negotiations