MD HB1007

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

APR must be calculated in accordance with the federal Truth in Lending Act and expressed as a yearly rate inclusive of all fees and finance charges.

Exempts federal and state banks, credit unions, savings associations and their affiliates, Farm Credit Act lenders, transactions over $2,500,000, real property-secured transactions, leases, and providers making 5 or fewer commercial financing transactions in Maryland per year.

Requires the Commissioner to adopt regulations substantially similar to New York State's commercial financing disclosure rules and approve disclosure forms from states with comparable requirements.

Establishes civil penalties of up to $2,000 per violation and $10,000 per willful violation, with authority for the Commissioner to order restitution and injunctive relief; effective October 1, 2026.