This is the fourth and final part of this series(see here for part one, part two and part three). In summary, few, if any, states have a licensing regimen similar to the one in California. Many do not require a license at all, and a few simply require registration. Similarly, with the exception of New York, no state has anything close to the comprehensive commercial financing disclosure rules that California has. The other states, if they require disclosures at all, do so on a much more modest scale. Do keep in mind the federal overlay, which would also apply to loans made to residents of Washington D.C. and presumably to those made in federal territories like Puerto Rico and Guam. This article does not cover the impact of any federal statutes on providing or brokering loans or other types of commercial financing in those areas.
New York
License: Yes, but only if the loan is $50k or less and charges an interest rate above 16%.
Disclosures: Yes. These are comprehensive, modeled after those in California.
North Carolina
License: No.
Disclosures: Yes.
North Dakota
License: Yes, lenders and brokers need a Money Broker License.
Disclosures: Yes.
Ohio
License: No.
Disclosures: No.
Oklahoma
License: No.
Disclosures: No.
Oregon
License: No.
Disclosures: Yes.
Pennsylvania
License: No.
Disclosures: No.
Rhode Island
License: Yes.
Disclosures: Yes.
South Carolina
License: No.
Disclosures: Yes.
South Dakota
License: Yes.
Disclosures: Yes, as required under the Money Lending License laws.
Tennessee
License: No.
Disclosures: No.
Texas
License: No.
Disclosures: Yes, sales-based financing (merchant cash advances) only.
Utah
License: No, but lenders and brokers must register with The Department of Financial Institutions.
Disclosures: Yes.
Vermont
License: Yes.
Disclosures: No.
Virginia
License: No.
Disclosures: Yes, but only for sales-based financing (merchant cash advances).
Washington
License: No.
Disclosures: No.
West Virginia
License: No.
Disclosures: No.
Wisconsin
License: No.
Disclosures: No.
Wyoming
License: No.
Disclosures: No.
I hope you will retain this checklist as a starting point when expanding into new geographic areas, or just to refresh your recollection on the licensing and disclosure laws in those states in which you are already doing business. Just keep in mind the everchanging landscape in the financial space and make sure you confirm with a knowledgeable professional that what is accurate as of the date of this article still remains that way at the time of your transaction.
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