On July 23, 2020, in an effort to increase transparency in
commercial financings so borrowers may make more informed
decisions, the New York State legislature passed a bill, S5470B,
which currently awaits the Governor's signature. The bill
requires certain commercial financing providers to disclose to
recipientsM1 critical information about the amount,
pricing, and terms of specific commercial financings, upon making
the offers. This information must be disclosed in uniform
formatting, to be determined by the New York State Department of
Financial Services (NYDFS), which is tasked with issuing
regulations to implement the bill.
Background
While many federal and state laws require creditors to disclose
to borrowers the cost of borrowing money, these laws generally
apply to loans originated for personal, family, or household
purposes and do not extend to commercial loans. States are
increasingly focused on commercial financing and have concentrated
on requiring the
