,i  #aah? ,,congress  #b;d ,session  ,h4
 ,r4 #ifcb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #ag1        
#bjbd,mr4 ,lucas introduc$ ! foll[+     
bill2 :i* 0 ref]r$ to ! ,committee on   
,small ,bus9ess  ,a ,,bill  ,to require 
c]ta9 entities to cle>ly disclose to    
small bus9ess conc]ns key in=mation ab\t
 factor+ facility agreem5ts prior to    
ent]+ su* agreem5ts ) su* conc]ns1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,capital ,access =     
,small ,bus9esses ,h>monization ,act or 
! ,,ca% ,act4  #b4 ,disclosures = small 
bus9esses t ent] into factor+ facility  
agreem5ts  7a7 ,9 g5]al ,prior to ent]+ 
into a factor+ facility agreem5t ) a    
small bus9ess conc]n1 ! provid] = su*   
agreem5t %all provide to su* small      
bus9ess conc]n a writt5 disclosure ( !  
t]ms ( factor+ transactions "u su*      
agreem5t if-- 7#a7 ! aggregate doll>    
am\nt ( factor+ transactions au?oriz$ "u
 su* agreem5t1 includ+ any fees & o!r   
*>ges1 is less ?an #ejj1jjj2 or  7#b7 if

 su* agreem5t does n specify ! aggregate
 doll> am\nt ( factor+ transactions     
au?oriz$ "u su* agreem5t1 ! su* provid] 
& ! small bus9ess conc]n reasonably     
believe t ! aggregate doll> am\nt (     
factor+ transactions "u su* agreem5t1   
includ+ any fees & o!r *>ges1 w be less 
?an #ejj1jjj4  7b7 ,disclosure cont5ts  
,ea* disclosure requir$ "u subsection   
7a7 ) respect to a factor+ facility     
agreem5t %all include ! foll[+3 7#a7 ,! 
am\nt or p]c5tage1 z applicable1 ( !    
diff]5ce betwe5 ! face value ( a claim =
 paym5t sold 9 a factor+ transaction & !
 am\nt ! provid] w pay to small bus9ess 
conc]n = su* claim "u su* factor+       
facility agreem5t4  7#b7 ,a li/ ( any   
fees t may be *>g$ "u su* factor+       
facility agreem5t4  7#c7 ,! am\nt & t]ms
 ( any res]ve "u su* factor+ facility   
agreem5t4  7#d7 ,! duration ( su*       
factor+ facility agreem5t4  7#e7 ,an    
example ( a factor+ transaction "u su*  
factor+ facility agreem5t = a claim =   
paym5t sold 9 a factor+ transaction ) a 

face value ( #aj1jjj t demon/rates--    
7,a7 ! am\nt or p]c5tage describ$ 9     
p>agraph 7#a72  7,b7 any fees t apply ) 
respect to factor+ transactions "u su*  
factor+ facility agreem5t2  7,c7 !      
maximum am\nt ( ! res]ve = su* factor+  
transactions "u su* factor+ facility    
agreem5t2 &  7,d7 ! net am\nt ! provid] 
pays to ! small bus9ess conc]n = su*    
claim 9 su* factor+ transaction4  7c7   
,rule ( con/ruction ,no?+ 9 ?is section 
%all be con/ru$ to require a provid] to 
provide to a small bus9ess conc]n !     
disclosure requir$ "u subsection 7a7 )  
respect to ! modification ( a factor+   
facility agreem5t4  #c4 ,f$]al          
preemption ,no ,/ate or political       
subdivision ( a ,/ate may impose a      
requirem5t t is 9 addition to1 or       
inconsi/5t )1 ! requirem5ts ( ?is ,act )
 respect to requir+ provid]s to make    
disclosures to small bus9ess conc]ns    
reg>d+ ! t]ms ( factor+ transactions "u 
a factor+ facility agreem5t4  #d4       
,def9itions ,9 ?is ,act3 7#a7 ,factor+  

transaction ,! t]m factor+ transaction  
means an agreem5t = ! sale ( acc\nts    
receivable ( a small bus9ess conc]n =   
goods ! small bus9ess conc]n has        
suppli$1 or s]vices ! small bus9ess     
conc]n has r5d]$1 b = :i* paym5t has n  
yet be5 made & = :i* ! prim>y s\rce (   
repaym5t to ! provid] is paym5t by !    
acc\nt debtor on ! acc\nt receivable be+
 pur*as$1 except t su* t]m does n       
include sales-bas$ f9anc+4  7#b7        
,factor+ facility agreem5t ,! t]m       
factor+ facility agreem5t means an      
agreem5t betwe5 a provid] & ano!r entity
 t e/abli%es ! t]ms ( factor+           
transactions betwe5 su* provid] & ano!r 
entity4  7#c7 ,provid] ,! t]m provid]   
means an individual or entity t-- 7,a7  
is a pur*as] 9 a factor+ transaction2 & 
7,b7 is engag$ 9 int]/ate comm]ce4  7#d7
 ,res]ve ,! t]m res]ve means ! portion (
 any paym5t "u a factor+ transaction t !
 provid] may )hold f ! small bus9ess    
conc]n ) respect to claims = paym5t sold
 "u su* factor+ transaction1 or any     

portion ( su* claims1 until su* claims1 
or ! portion !re(1 are paid4  7#e7      
,sales-bas$ f9anc+ ,! t]m sales-bas$    
f9anc+ means a f9anc+ transaction t is  
repaid by ! bus9ess ov] "t-- 7,a7 z a   
p]c5tage ( sales or rev5ue1 9 :i* !     
paym5t am\nt may increase or decrease   
accord+ to ! volume ( sales made or     
rev5ue receiv$ by ! bus9ess2 or  7,b7   
accord+ to a fix$ paym5t me*anism t     
provides = a reconciliation process t   
adju/s ! paym5t to an am\nt t is a      
p]c5tage ( sales or rev5ue4  7#f7 ,small
 bus9ess conc]n ,! t]m small bus9ess    
conc]n has ! mean+ giv5 su* t]m "u      
section #c ( ! ,small ,bus9ess ,act 7#ae
 ,u4,s4,c4 #fcb74