Commercial Financing - Small Business Truth in Lending Act

HB 1007, the "Commercial Financing - Small Business Truth in Lending Act," requires lenders to provide clear, standardized disclosures about costs, annual percentage rates (APRs), and repayment terms for commercial financing used by small businesses. It directly affects small business owners (recipients) and lenders (providers) offering financing for business operations, equipment, or services - not personal use - excluding large transactions ($2.5M+), banks, and certain other entities. Key provisions mandate transparent calculations of finance charges, fixed repayment structures, and clear terms for sales-based financing (where payments adjust with revenue). The bill creates new definitions and requirements under Maryland’s Financial Institutions law to ensure small businesses understand the true cost of commercial loans.