MD HB693

Requires providers of commercial financing (including closed-end financing, open-end financing, sales-based financing, and factoring transactions) to disclose annual percentage rates, finance charges, total repayment amounts, payment terms, and prepayment penalties to small business recipients before finalizing transactions

Applies to commercial financing transactions of $2,500,000 or less where proceeds are not used for personal, family, or household purposes; exempts banks, credit unions, savings associations, Farm Credit Act lenders, real property-secured transactions, and providers making 5 or fewer transactions annually in Maryland

Mandates APR calculations follow the Federal Truth in Lending Act methodology, with sales-based financing APRs calculated using projected sales volume determined by either historical sales data or an opt-in method subject to Commissioner review

Requires recipients to sign disclosures before proceeding with financing applications, and prohibits presenting non-APR cost metrics as "rates" or using the term "interest" for anything other than annual percentage rates

Authorizes civil penalties of up to $2,000 per violation and $10,000 per willful violation, plus restitution and injunctive relief; directs the Commissioner to adopt regulations substantially similar to New York's commercial financing disclosure rules; effective October 1, 2025