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SB 362

Commercial financing: disclosures.

2025-2026 Regular Session Introduced by Tim Grayson

SB 362 requires California lenders to provide standardized disclosures of terms and costs in commercial financing deals, increasing borrower transparency and comparison ability.

Chaptered by Secretary of State. Chapter 352, Statutes of 2025.
#commercialfinancing #disclosures
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Bill Summary · SB 362

Legislative bill overview

SB 362 establishes new disclosure requirements for commercial financing transactions in California. The law mandates that lenders provide borrowers with standardized, clear information about loan terms, costs, and conditions before entering into commercial financing agreements.

Why is this important

Commercial financing lacks the consumer protection disclosures required for personal lending, leaving small business owners and commercial borrowers potentially vulnerable to hidden fees and unfavorable terms. Standardized disclosures create transparency that allows borrowers to compare offers, understand true costs, and make informed decisions about their business financing.

Potential points of contention

  • Compliance burden on lenders: Financial institutions may argue that new disclosure requirements increase administrative costs and slow the commercial lending process, potentially affecting loan approval timelines
  • Definition scope: Disagreement over which transactions qualify as "commercial financing" and whether certain exemptions (for sophisticated borrowers, large transactions, etc.) are appropriate
  • Competitive disadvantage: Non-bank lenders and alternative financing sources may face different regulatory burdens, potentially creating uneven market conditions

Compiled from official sources — confirm details with the bill’s official record.

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