New York to Require Rate Disclosures on Small Business Loans

New York’s financial regulator wants lenders like LendingClub Corp. and Square Inc. to provide small-business borrowers with clear disclosures about interest rates and other loan charges and fees.

The New York Department of Financial Services Tuesday issued a proposal to impose disclosure requirements for small business loans under $2.5 million.

The rule would implement a state law enacted in December that requires non-bank lenders to provide clear descriptions of the estimated annual percentage rate (APRs), the total repayment amount, and other fees or costs of financing extended to small businesses.

New York joins California in mandating disclosures for small business ...