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New York Passes Small Business Lending Disclosure Bill

July 24, 2020, 12:59 PM

New York’s state legislature passed a bill to require online lenders such Funding Circle and LendingClub to disclose the cost of small business capital to borrowers.

The New York Senate and Assembly voted Thursday to approve companion bills (S 5470/A 10118-A) that would require non-bank lenders to disclose terms such as an estimated annual percentage rate, the total repayment amount, and other fees or costs of financing extended to small businesses.

New York would become the second state after California to require Truth in Lending Act-type disclosures for small business loans if Gov. Andrew Cuomo (D) signs the measure.

The ...