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Bill

Bill

A 865

Requires certain disclosures by providers of commercial financing.

2024-2025 Regular Session Introduced by Verlina Reynolds-Jackson and 1 co-sponsor

New Jersey bill requiring commercial financing providers to disclose unspecified information to borrowers, now in committee review.

Introduced in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee
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Bill Summary · A 865

Legislative bill overview

Bill A 865 mandates that providers of commercial financing disclose specific information to borrowers, though the bill text does not detail which exact disclosures are required. The measure was introduced in the New Jersey Assembly in January 2024 and is currently under review by the Financial Institutions and Insurance Committee.

Why is this important

Commercial financing—loans to businesses for equipment, inventory, or operations—often involves complex terms that borrowers may not fully understand. Enhanced disclosure requirements could increase transparency in these transactions, helping small business owners make more informed decisions and potentially reducing predatory lending practices in the commercial lending market.

Potential points of contention

  • Scope ambiguity: Without knowing the specific disclosures required, lenders cannot assess compliance costs or borrowers understand what information they'll receive
  • Lender compliance burden: Commercial financing providers may argue that prescriptive disclosure requirements increase operational costs and could reduce credit availability to small businesses
  • Competitive impact: Disclosure mandates could disproportionately affect smaller lenders while large banks absorb compliance costs more easily, potentially consolidating the market

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

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