California has become the first state to require truth-in-lending type disclosures for small-business loans from fintech companies after Gov. Jerry Brown signed a commercial lending disclosures bill into law Sept. 30.
Online lenders such as Amazon.com Inc., PayPal Holdings Inc., Square Inc., and LendingClub Corp. will be required to disclose costs and fees to small businesses when they offer them financing. Commercial loans aren’t subject to the same federal cost disclosure requirements as consumer loans.
The law faced strong opposition. PayPal, Square, and many other companies that offer revolving credit or products that depend on a merchant’s transaction volume have ...
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