,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #cbdd  ,,in ,,the ,,house ,,of  
,,representatives  ,may #g1 #bjbe,mr4   
,lucas introduced the following bill2   
which was referred to the ,committee on 
,small ,business  ,a ,,bill  ,to require
 certain entities to clearly disclose to
 small business concerns key information
 about factoring facility agreements    
prior to entering such agreements with  
such concerns1 and for other purposes4  
#a4 ,short title ,this ,act may be cited
 as the ,capital ,access for ,small     
,businesses ,harmonization ,act or the  
,,cash ,act4  #b4 ,disclosures for small
 businesses that enter into factoring   
facility agreements  7a7 ,in general    
,prior to entering into a factoring     
facility agreement with a small business
 concern1 the provider for such         
agreement shall provide to such small   
business concern a written disclosure of
 the terms of factoring transactions    
under such agreement if--  7#a7 the     
aggregate dollar amount of factoring    

transactions authorized under such      
agreement1 including any fees and other 
charges1 is less than #ejj1jjj2 or  7#b7
 such agreement does not specify the    
aggregate dollar amount of factoring    
transactions authorized under such      
agreement1 such provider and the small  
business concern reasonably believe that
 the aggregate dollar amount of         
factoring transactions under such       
agreement1 including any fees and other 
charges1 will be less than #ejj1jjj4    
7b7 ,disclosure contents ,each          
disclosure required under subsection 7a7
 with respect to a factoring facility   
agreement shall include the following3  
7#a7 ,the amount or percentage1 as      
applicable1 of the difference between   
the face value of a claim for payment   
sold in a factoring transaction and the 
amount the provider will pay to small   
business concern for such claim under   
such factoring facility agreement4  7#b7
 ,a list of any fees that may be charged
 under such factoring facility          

agreement4  7#c7 ,the amount and terms  
of any reserve under such factoring     
facility agreement4  7#d7 ,the duration 
of such factoring facility agreement4   
7#e7 ,an example of a factoring         
transaction under such factoring        
facility agreement for a claim for      
payment sold in a factoring transaction 
with a face value of #aj1jjj that       
demonstrates--  7,a7 the amount or      
percentage described in paragraph 7#a72 
7,b7 any fees that apply with respect to
 factoring transactions under such      
factoring facility agreement2  7,c7 the 
maximum amount of the reserve for such  
factoring transactions under such       
factoring facility agreement2 and  7,d7 
the net amount the provider pays to the 
small business concern for such claim in
 such factoring transaction4  7c7 ,rule 
of construction ,nothing in this section
 shall be construed to require a        
provider to provide to a small business 
concern the disclosure required under   
subsection 7a7 with respect to the      

modification of a factoring facility    
agreement4  #c4 ,federal preemption ,no 
,state or political subdivision of a    
,state may impose a requirement that is 
in addition to1 or inconsistent with1   
the requirements of this ,act with      
respect to requiring providers to make  
disclosures to small business concerns  
regarding the terms of factoring        
transactions under a factoring facility 
agreement4  #d4 ,definitions ,in this   
,act3 7#a7 ,factoring transaction ,the  
term factoring transaction means an     
agreement for the sale of accounts      
receivable of a small business concern  
for goods the small business concern has
 supplied1 or services the small        
business concern has rendered1 but for  
which payment has not yet been made and 
for which the primary source of         
repayment to the provider is payment by 
the account debtor on the account       
receivable being purchased4 ,for        
purposes of this ,act1 the parties'     
characterization of a transaction as a  

purchase and sale of accounts receivable
 shall be conclusive that the           
transaction is a true sale and          
considered a factoring transaction4 ,the
 term factoring transaction excludes a  
loan or an advance of money to a small  
business that is to be repaid by the    
small business from the proceeds of     
future accounts receivable which are not
 in existence when the loan or advance  
is made4  7#b7 ,factoring facility      
agreement ,the term factoring facility  
agreement means an agreement between a  
provider and another entity that        
establishes the terms of factoring      
transactions between such provider and  
another entity4  7#c7 ,provider ,the    
term provider means an individual or    
entity that--  7,a7 is a purchaser in a 
factoring transaction2 and  7,b7 is     
engaged in interstate commerce4  7#d7   
,reserve ,the term reserve means the    
portion of any payment under a factoring
 transaction that the provider may      
withhold from the small business concern

 with respect to claims for payment sold
 under such factoring transaction1 or   
any portion of such claims1 until such  
claims1 or the portion thereof1 are     
paid4  7#e7 ,small business concern ,the
 term small business concern has the    
meaning given such term under section #c
 of the ,small ,business ,act 7#ae      
,u4,s4,c4 #fcb74