MD SB881

Requires providers of commercial financing (including closed-end, open-end, sales-based financing, and factoring transactions) to disclose key terms to small business recipients, including financing amount, finance charges, annual percentage rate (APR), total repayment amount, 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/state banks, credit unions, savings associations and their affiliates, transactions over $2,500,000, providers making 5 or fewer transactions annually in Maryland, real property-secured transactions, and certain vehicle dealer financing of at least $50,000

Recipients must sign each required disclosure before proceeding with the financing application; providers using the "opt-in method" for sales projections must report annually to the Commissioner comparing estimated vs. actual APRs

Commissioner may impose civil penalties up to $2,000 per violation ($10,000 for willful violations), order restitution or injunctions, and must adopt regulations substantially similar to New York's commercial financing rules; effective October 1, 2026