Navigate the complex patchwork of state-specific lending laws with this essential guide to commercial licensing and disclosure requirements from Louisiana to New Mexico.
This is the third part of a series. If you haven’t yet, read part one and part two of the series. This third edition provides a synopsis of the licensing and commercial disclosure obligations (or lack thereof) in each state. Please note that there is still a great deal of activity in this area and that the laws of each state are apt to change at any time. If you plan on brokering or making a loan, equipment finance agreement, or certain kinds of alternative financing in a particular state, you should check this guide. If these articles list that state as one that requires a license, commercial disclosures, or both, you should consult with an attorney to ensure compliance with the rules and regulations governing these laws. They can be cumbersome and confusing, particularly in California and New York, and especially the first time. If these articles state that you don’t need a obtain a license or provide disclosures, I recommend first that you find out whether there have been any changes in those states.
Louisiana
License: No, but brokers must register with the Office of Financial Institutions unless the broker’s fee is completely contingent.
Disclosures: Yes, but only for revenue-based financing (merchant cash advances).
Maine
License: No.
Disclosures: Yes.
Maryland
License: No.
Disclosures: No.
Massachusetts
License: No, although transactions of under $6000 with interest rates higher than 12% require a license.
Disclosures: Yes.
Michigan
License: Yes.
Disclosures: Yes.
Minnesota
License: Generally, no.
Disclosures: Yes.
Mississippi
License: No.
Disclosures: Yes.
Missouri
License: Yes.
Disclosures: Yes.
Montana
License: No.
Disclosures: No.
Nebraska
License: Yes.
Disclosures: No, although brokers must provide one to borrowers, although it discloses information about the broker, not the loan.
Nevada
License: No.
Disclosures: Yes.
New Hampshire
License: No.
Disclosures: Yes.
New Jersey
License: No.
Disclosures: Maybe soon.
New Mexico
License: No, except for providers who make small loans of $10,000 or less and vehicle financiers.
Disclosures: No.
My last article will address the remaining states, from New York, to Wyoming. Stay tuned…
The Law Offices of Kenneth Charles Greene present this article. All copyrightable text, the selection, arrangement, and presentation of all materials (including information in the public domain), and the overall design of this presentation are the property of the Law Offices of Kenneth Charles Greene. All rights reserved. Permission is granted to download and reprint materials from this article for the purpose of viewing, reading, and retaining for reference. Any other copying, distribution, retransmission, or modification of information or materials from this article, whether in electronic or hard copy form, without the express prior written permission of Kenneth C. Greene is prohibited. The materials available from this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any issue or problem. Use of and access to these materials does not create an attorney-client relationship between the Law Office of Kenneth Charles Greene and the user or viewer. The opinions expressed herein are the opinions of the individual author.
