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Who cares
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Sponsors
No co-sponsors yet.
History
- Substituted by A10259A
- Ordered to third reading cal.1877
- Committee discharged and committed to rules
- Print number 7925a
- Amend and recommit to commerce, economic development and small business
- Referred to commerce, economic development and small business
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to small business online lending awareness and outreach campaign
Signed by Governor · Sponsor Fred Thiele
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the economic development law, in relation to small business online lending awareness and outreach campaign
Purpose or general idea of bill
This bill would provide for the development and implementation of a small business online lending education and outreach campaign on the potential costs associated with obtaining loans from online marketplace lenders.
Summary of provisions
This bill would amend subdivision 11 of section 134 of the Economic Development Law to require the Department of Economic Development, in conjunction with the Department of Financial Services, to develop a small business online lending education and outreach campaign. The outreach campaign would be designed to educate businesses, in plain-language terms, of the potential costs associated with obtaining loans from online marketplace lenders including true and up-front transparent pricing and terms, the disclosure of annualized percentage rates, fees and charges, early repayment, and refinancing of a loan and any penalties that may be applied, and any other information that the Department of Economic Development deems necessary. Further, the Department of Economic Development would be required to develop and implement a plan to distribute such information to small business owners via print and electronic media.
Justification
The purpose of this legislation is to provide small businesses with information relating to obtaining loans via online marketplace platforms. In the last decade, this segment of the financial marketplace has steadily expanded and is expected to continue to rapidly grow as advances in technology and data availability are changing how small businesses are accessing funds to finance their businesses.
The online lending marketplace has the potential to provide capital to small businesses that may not have access otherwise or do not have the time to go through a traditional lending process. However, with easier access, the potential exists for some online lenders to exploit small businesses by the lack of transparency and disclosure of interest rates, fees, loan terms, and repayment terms. Currently, the online marketplace lending does not have the statutory or regulatory framework to ensure that safeguards are in place to protect small business from seeking a short-term solution that becomes a long-term financial burden. Since regulation of the banking and lending industry is primarily a federal function, this legislation is designed to make small businesses aware of potential financial risks associated with this emerging lending platform.
Legislative history
This is a new bill.
Fiscal implications
Undetermined.
Effective date
This act shall take effect on the ninetieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.