A01420 Summary

• Establishes commercial finance licensing requirements administered by the banking superintendent for entities making or soliciting commercial financing products up to $500,000 to New York businesses, with exemptions for banks, credit unions, insurance companies, and those making five or fewer transactions annually.

• Requires licensees to maintain minimum liquid assets of $50,000, submit to examinations and annual reporting, and prohibits false advertising and certain lending practices like taking confessions of judgment.

• Makes unlicensed commercial financing void with no right to collect principal, interest, or fees; violators are subject to misdemeanor penalties.

• Creates the minority- and women-owned business (MWBE) development and lending program funded by at least 50% of licensing fees to provide grants up to $100,000 for rent, inventory, payroll, and utilities to eligible MWBEs affected by the COVID-19 pandemic.

• Renumbers existing Article 9-A to Article 9-B and makes conforming technical amendments to references throughout the banking law and New York City administrative code.