,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bjba  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #ae1 #bjbc,mr4   
,m55dez 7= himself1 ,mr4 ,br[n1 ,mr4    
,wyd51 & ,mr4 ,c>d97 introduc$ ! foll[+ 
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs  ,a ,,bill  ,to am5d ! ,tru? 9 
,l5d+ ,act to apply t ,act to small     
bus9ess f9anc+1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,small ,bus9ess ,f9anc+ ,disclosure ,act
 ( #bjbc4  #b4 ,application ( ! ,tru? 9 
,l5d+ to small bus9ess f9anc+  7a7 ,9   
g5]al ,! ,tru? 9 ,l5d+ ,act 7#ae        
,u4,s4,c4 #afja et seq47 is am5d$ by    
add+ at ! end ! foll[+3  #f ,small      
,bus9ess ,f9anc+  #aia4 ,def9itions4    
#aib4 ,application ( ?is title to small 
bus9ess f9anc+4 #aic4 ,additional       
disclosures4 #aid4 ,re/rictions on      
d\ble-dipp+4 #aie4 ,additional          
provisions4  #aia4 ,def9itions ,9 ?is   
*apt]3 7#a7 ,clos$-end comm]cial cr$it  
,! t]m clos$-end comm]cial cr$it-- 7,a7 

means a secur$ or unsecur$ clos$-end    
ext5sion ( cr$it1 includ+ f9anc+ ) an   
e/abli%$ pr9cipal am\nt su* z equipm5t  
f9anc+ t is n a lease1 z def9$ 9 section
 #b;,a-#ajc ( ! ,uni=m ,comm]cial ,code1
 ! proce$s ( :i* ! recipi5t does n int5d
 to use prim>ily = p]sonal1 family or   
h\sehold purposes2 &  7,b7 includes     
f9anc+ ) an e/abli%$ pr9cipal am\nt &   
duration4  7#b7 ,consum] f9ancial       
product or s]vice ,! t]m consum]        
f9ancial product or s]vice has ! mean+  
giv5 ! t]m 9 section #ajjb ( ! ,consum] 
,f9ancial ,protection ,act ( #bjaj 7#ab 
,u4,s4,c4 #edha74  7#c7 ,director ,! t]m
 ,director means ! ,director ( !        
,bureau4  7#d7 ,factor+ ,! t]m factor+  
means a transaction t includes an       
agreem5t to pur*ase1 transf]1 or sell a 
legally en=ceable claim = paym5t held by
 a recipi5t = goods ! recipi5t has      
suppli$ or s]vices ! recipi5t has r5d]$ 
t h be5 ord]$ b = :i* paym5t has n yet  
be5 made4  7#e7 ,f9ance *>ge  7,a7 ,9   
g5]al ,! t]m f9ance *>ge-- 7i7 means !  

co/ ( f9anc+ z a doll> am\nt2 &  7ii7   
includes any *>ge payable directly or   
indirectly by ! recipi5t ( ! f9anc+ &   
impos$ directly or indirectly by !      
provid] ( ! f9anc+ z an incid5t to or a 
condition ( ! ext5sion ( f9anc+4  7,b7  
,calculation 9 op5-end comm]cial cr$it  
plans ,9 any op5-end comm]cial cr$it    
plan1 ! f9ance *>ge %all be comput$     
assum+ ! maximum am\nt ( cr$it available
 to ! recipi5t1 9 ea* case1 is drawn &  
repaid at ! m9imum rate4  7,c7          
,calculation 9 factor+ transactions ,9  
any factor+ transaction1 ! f9ance *>ge  
includes ! disc\nt tak5 on ! face value 
( ! acc\nts receivable4  7,d7           
,calculation 9 lease f9anc+ transactions
 ,9 any lease f9anc+ transaction1 !     
f9ance *>ge includes ! sum ( ! lease    
paym5ts &1 if !re is a fix$-price       
pur*ase option or a pur*ase option ) a  
price t c be calculat$ at ! "t (        
disclosure1 ! pur*ase price li/$ 9 !    
contract t ! lessee may pay to acquire !
 leas$ goods at ! end ( ! lease1 m9us-- 

7i7 if ! f9ance company selects1        
manufactures1 or supplies ! goods to be 
leas$1 ! price t ! f9ance company w\ld  
sell ! goods 9 a ca% transaction2 or    
7ii7 if ! f9ance company does n select1 
manufacture1 or supply ! goods to be    
leas$1 ! price ! f9ance company w pay to
 acquire ! prop]ty to be leas$4  7,e7   
,inclusion ( c]ta9 prepaym5t *>ges  7i7 
,9 g5]al ,if1 z a condition ( obta9+ !  
(f]$ comm]cial f9anc+ ! provid] requires
 ! recipi5t to pay (f ! balance ( an    
exi/+ loan or advance f ! same provid]1 
any prepaym5t *>ge or p5alty requir$ to 
be paid on ! exi/+ f9anc+ %all be       
includ$ z a f9anc+ *>ge4  7ii7 ,treatm5t
 :5 repaym5t am\nt is calculat$ z a fix$
 am\nt ,= purposes ( clause 7i71 =      
f9anc+ = :i* ! total repaym5t am\nt is  
calculat$ z a fix$ am\nt1 ! prepaym5t   
*>ge is equal to ! orig9al f9ance *>ge  
multipli$ by ! requir$ prepaym5t am\nt z
 a p]c5tage ( ! total repaym5t am\nt1   
m9us any portion ( ! total repaym5t     
am\nt =giv5 by ! provid] at ! "t (      

prepaym5t4  7#f7 ,op5-end comm]cial     
cr$it plan ,! t]m op5-end comm]cial     
cr$it plan means any small bus9ess      
f9anc+ provid$ by a p]son "u a plan t-- 
7,a7 ! p]son reasonably contemplates    
repeat transactions2  7,b7 prescribes ! 
t]ms ( ! transactions2 &  7,c7 provides 
= a f9ance *>ge t may be comput$ f "t to
 "t on ! out/&+ unpaid balance4  7#g7   
,provid] ,! t]m provid] mean a p]son :o 
(f]s or provides small bus9ess f9anc+4  
7#h7 ,recipi5t ,! t]m recipi5t means a  
p]son :o is pres5t$ an (f] ( small      
bus9ess f9anc+4  7#i7 ,sales-bas$ f9anc+
 ,! t]m sales-bas$ f9anc+-- 7,a7 means a
 transaction = an ext5sion ( f9anc+ to a
 recipi5t t is repaid by ! recipi5t1 ov]
 "t1 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 ! recipi5t2 & 
7,b7 includes transactions ) a true-up  
me*anism4  7#aj7 ,small bus9ess ,! t]m  
small bus9ess has ! mean+ giv5 ! t]m    
small-bus9ess conc]n 9 section #c ( !   

,small ,bus9ess ,act 7#ae ,u4,s4,c4     
#fcb74  7#aa7 ,small bus9ess f9anc+ ,!  
t]m small bus9ess f9anc+-- 7,a7 means   
any l9e ( cr$it1 clos$-end comm]cial    
cr$it1 sales-bas$ f9anc+1 or o!r        
non-equity obligation or alleg$         
obligation ( a p>tn]%ip1 corporation1   
coop]ative1 association1 sole           
proprietor%ip1 or o!r entity t is n m   
?an #b1ejj1jjj2 &  7,b7 does n include  
any obligation or alleg$ obligation ( an
 individual t is prim>ily = p]sonal1    
family1 or h\sehold purposes4  7#ab7    
,specific (f] ,! t]m specific (f] means 
! specific t]ms ( small bus9ess f9anc+1 
includ+ price or am\nt1 t is quot$ to a 
recipi5t1 bas$ on in=mation obta9$ f1 or
 ab\t ! recipi5t1 :i*1 if accept$ by a  
recipi5t1 %all be b9d+ on ! provid]1 z  
applicable1 subject to any specific     
requirem5ts /at$ 9 su* t]ms4  #aib4     
,application ( ?is title to small       
bus9ess f9anc+  7a7 ,9 g5]al ,?is title 
%all apply to small bus9ess f9anc+ made 
to a small bus9ess to ! same ext5t t ?is

 title applies to ext5sions ( cr$it made
 to a consum]4  7b7 ,rulemak+ ,!        
,director %all prescribe regulations    
necess>y to c>ry out ?is *apt]4  7c7    
,bureau au?ority ,= purposes ( c>ry+ out
 ?is *apt] & o!r ,f$]al laws1 includ+ ! 
,consum] ,f9ancial ,protection ,act (   
#bjaj 7#ab ,u4,s4,c4 #edha et seq471 !  
,bureau %all h ! same au?ority ) respect
 to small bus9ess f9anc+ z ! ,bureau has
 ) respect to consum] f9ancial products 
& s]vices4  #aic4 ,additional           
disclosures  7a7 ,9 g5]al ,any provid]  
(f]+ small bus9ess f9anc+ to a small    
bus9ess %all disclose ! foll[+ in=mation
 to a recipi5t at ! "t ( ext5d+ a       
specific (f] = small bus9ess f9anc+3    
7#a7 ,f9anc+ am\nt ,! total am\nt to be 
paid to ! small bus9ess1 tak+ into      
acc\nt all fees & *>ges to be )held at  
disbursem5t4  7#b7 ,annual p]c5tage rate
  7,a7 ,clos$-end comm]cial cr$it ,)    
respect to clos$-end comm]cial cr$it1 ! 
annual p]c5tage rate1 us+ only ! words  
annual p]c5tage rate or ! abbreviation  

,,apr1 express$ z a ye>ly rate1 includ+ 
any fees & f9ance *>ges t _c be avoid$  
by a recipi5t4  7,b7 ,op5-end comm]cial 
cr$it plans ,) respect to op5-end       
comm]cial cr$it plans1 ! annual p]c5tage
 rate1 us+ only ! words annual p]c5tage 
rate or ! abbreviation ,,apr1 express$ z
 a nom9al ye>ly rate1 includ+ any fees &
 f9ance *>ges t _c be avoid$ by a       
recipi5t1 bas$ on ! maximum am\nt (     
cr$it available to ! recipi5t & ! t]m   
result+ f mak+ ! m9imum requir$ paym5ts 
t]m z disclos$4  7,c7 ,sales-bas$ f9anc+
  7i7 ,9 g5]al ,) respect to sales-bas$ 
f9anc+1 ! e/imat$ annual p]c5tage rate1 
us+ ! words annual p]c5tage rate or !   
abbreviation ,,apr1 express$ z a ye>ly  
rate1 includ+ any fees & f9ance *>ges1  
bas$ on ! e/imat$ t]m ( repaym5t & !    
project$ p]iodic paym5t am\nts4  7ii7   
,calculation ( c]ta9 paym5t am\nts ,!   
e/imat$ t]m ( repaym5t & ! project$     
p]iodic paym5t am\nts %all be calculat$ 
bas$ on ! project$ sales volume ( !     
recipi5t4  7iii7 ,calculation ( project$

 sales volumes ,= purposes ( clause     
7ii71 ! project$ sales volume may be    
calculat$-- 7,i7 accord+ to a me?od     
def9$ by ! ,director bas$ on ! hi/orical
 sales volume ( ! recipi5t ov] a def9$  
p]iod ( "t t is us$ = all sales-bas$    
f9anc+ transactions by t provid]2 or    
7,,ii7 by a me?od o!r ?an ! me?od       
describ$ 9 subclause 7,i7 t is def9$ by 
! provid] & approv$ by ! ,director1 )   
ongo+ monitor+ by ! ,director = accuracy
 bas$ on a comp>ison ( ! annual p]c5tage
 rate z disclos$ to ! recipi5t & z      
calculat$ retrospectively ^u repaym5t ( 
! f9anc+4  7,d7 ,factor+  7i7 ,9 g5]al  
,) respect to factor+1 ! e/imat$ annual 
p]c5tage rate1 us+ t t]m4  7ii7         
,calculation ,to calculate ! e/imat$    
annual p]c5tage rate "u clause 7i7--    
7,i7 ! pur*ase am\nt %all be consid]$ ! 
f9anc+ am\nt2  7,,ii7 ! pur*ase am\nt   
m9us ! total co/ ( f9anc+ %all be       
consid]$ ! paym5t am\nt2 &  7,,iii7 !   
t]m is e/abli%$ by ! paym5t due date ( !
 receivables4  7iii7 ,alt]nate me?od to 

e/imate t]m ,not)/&+ clause 7ii77,,iii71
 a provid] may e/imate ! t]m = a factor+
 transaction z ! av]age paym5t p]iod1   
its hi/orical data ov] a p]iod n to     
exce$ ! previ\s #ab mon?s1 conc]n+      
paym5t invoices paid by ! p>ty ow+ !    
acc\nts receivable 9 "q4  7#c7 ,paym5t  
am\nt ,) respect to small bus9ess f9anc+
 o!r ?an factor+-- 7,a7 = paym5t am\nts 
t are fix$-- 7i7 ! paym5t am\nts &      
frequ5cy 7e4g41 daily1 weekly1 mon?ly72 
&  7ii7 if ! t]m is long] ?an "o mon? & 
paym5t frequ5cy is o!r ?an mon?ly1 !    
av]age total mon?ly paym5t am\nt2 or    
7,b7 = paym5t am\nts t are v>iable-- 7i7
 a full paym5t s*$ule or a description (
 ! me?od us$ to calculate ! am\nts &    
frequ5cy ( paym5ts2 &  7ii7 if ! t]m is 
long] ?an "o mon?1 ! e/imat$ av]age     
total mon?ly paym5t am\nt4  7#d7 ,t]m ,=
 f9anc+ o!r ?an factor+1 ! t]m ( ! small
 bus9ess f9anc+-- 7,a7 9 mon?s or 9     
ye>s2 or  7,b7 if ! t]m is n fix$1 !    
e/imat$ t]m1 calculat$ us+ ! same       
assumptions us$ to calculate ! e/imat$  

annual p]c5tage rate4  7#e7 ,f9ance *>ge
 ,! f9ance *>ge ( ! small bus9ess       
f9anc+1 brok5 d[n to %[ :at exp5ses &   
fees are includ$ 9 ! f9ance *>ge4  7#f7 
,prepaym5t co/ or sav+s ,if a recipi5t  
elects to pay (f or ref9ance ! small    
bus9ess f9anc+ prior to full repaym5t1 !
 provid] %all disclose-- 7,a7 :e!r !    
recipi5t w\ld be requir$ to pay any     
f9ance *>ges o!r ?an int]e/ accru$ s9ce 
! la/ paym5t by ! recipi5t2  7,b7 if !  
recipi5t is requir$ to pay ! f9ance     
*>ges describ$ 9 subp>agraph 7,a71 !    
p]c5tage ( any unpaid portion ( ! f9ance
 *>ge & maximum doll> am\nt ! recipi5t  
c\ld be requir$ to pay2 &  7,c7 :e!r !  
recipi5t w\ld be requir$ to pay any     
additional fee n already includ$ 9 !    
f9ance *>ge4  7#g7 ,collat]al           
requirem5ts ,any collat]al requirem5t t 
w be impos$ on ! small bus9ess 9        
connection ) ! small bus9ess f9anc+4    
7b7 ,=m ( disclosures  7#a7 ,9 g5]al    
,disclosures pursuant to ?is section    
%all be disclos$ 9 writ+1 at ! "t a     

specific (f] is made1 & 9 a mann] t is  
cle>1 conspicu\s1 complete1 & all[s !   
small bus9ess to comp>e ! range ( small 
bus9ess f9anc+ options t ! small bus9ess
 may be consid]+4  7#b7 ,prom95ce (     
disclosures ,9 mak+ any disclosure      
pursuant to ?is section1 ! disclosures  
requir$ "u p>agraphs 7#a71 7#b71 & 7#c7 
( subsection 7a7 %all be display$ mo/   
prom95tly4  #aid4 ,re/rictions on       
d\ble-dipp+ ,if a l5d] ( small bus9ess  
f9anc+ ref9ances or modifies an exi/+   
loan ) a fix$ fee z ! prim>y f9anc+     
*>ge1 ! l5d] may n *>ge a fee on !      
out/&+ pr9cipal ( ! loan unless !re is a
 tangible b5efit to ! small bus9ess4    
#aie4 ,additional provisions  7a7 ,rule 
( con/ruction ,no?+ 9 ?is *apt] may be  
con/ru$ to prev5t a provid] f provid+ or
 disclos+ additional in=mation on a     
small bus9ess f9anc+ be+ (f]$ to a      
recipi5t unless ! additional in=mation  
may n be disclos$ z "p ( ! disclosure   
requir$ by ?is *apt]4  7b7 ,use ( t]ms  
7#a7 ,rate ,if o!r metrics ( f9anc+ co/ 

are disclos$ or us$ 9 ! application     
process ( a small bus9ess f9anc+1 !     
metrics %all n be pres5t$ z a rate if !y
 are n ! annual int]e/ rate or ! annual 
p]c5tage rate4  7#b7 ,int]e/ ,! t]m     
int]e/1 :5 us$ to describe a p]c5tage   
rate to a recipi5t or pot5tial recipi5t1
 %all only be us$ to describe annualiz$ 
p]c5tage rates1 su* z ! annual int]e/   
rate4  7c7 ,requirem5t ,to /ate ,,apr   
,if a provid] /ates 9 writ+ a rate (    
f9ance *>ge or a f9anc+ am\nt to a      
recipi5t dur+ an application process =  
small bus9ess f9anc+1 ! provid] %all    
also /ate ! annual p]c5tage rate or1 9 !
 case ( sales-bas$ f9anc+ or factor+1 ! 
e/imat$ annual p]c5tage rate1 ) equal or
 great] prom95ce1 us+ ! t]m annual      
p]c5tage rate or ! abbreviation ,,apr4  
4  7b7 ,te*nical & con=m+ am5dm5t ,!    
table ( *apt]s = title ,i ( ! ,consum]  
,cr$it ,protection ,act is am5d$ by add+
 at ! end ! foll[+3  #f4 ,small ,bus9ess
 ,f9anc+#aia4  4  7c7 ,rulemak+ deadl9e 
,n lat] ?an ! end ( ! #b-ye> p]iod      

beg9n+ on ! date ( enactm5t ( ?is ,act1 
! ,director ( ! ,bureau ( ,consum]      
,f9ancial ,protection %all prescrib$    
f9al regulations to c>ry out ! am5dm5ts 
made by ?is section4  7d7 ,effective    
date ,! am5dm5ts made by subsection 7a7 
%all take effect on ! date t is #cf     
mon?s aft] ! date ( enactm5t ( ?is ,act4