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CA SB972
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Tim Grayson
Click for details
AI Summary
- SEC-registered investment advisers may obtain a single finance lender license to conduct commercial lending on behalf of themselves and all affiliated advisers and client accounts, without requiring separate licenses for each entity
- Licensing is limited to commercial loans exceeding $500,000 that are privately originated; mortgage loans, consumer loans, and commercial loans of $500,000 or less are excluded from this streamlined process
- Each client account must maintain a minimum net worth of $25,000 or have binding capital commitments of at least $25,000, and the adviser must obtain a surety bond of $25,000 per client account listed
- Only individuals who both directly control the adviser's activities and hold direct responsibility for making lending decisions must submit fingerprints for background checks
- Client accounts covered under this licensing framework are added to the class of persons exempt from California's constitutional usury limits
Legislative Description
California Financing Law: commercial loans: investment advisers.
Last Action
Set for hearing March 18.
2/24/2026
Committee Referrals
Banking and Financial Institutions2/11/2026
Rules2/4/2026
Full Bill Text
No bill text available