SB 881 Maryland Senate · 2026 Regular Session

Financial Institutions and Activities - Licensing Requirements and Regulation of Commercial Financing

SB 881 establishes new disclosure requirements for commercial financing used by small businesses in Maryland, requiring lenders to clearly explain costs, annual percentage rates (APR), and repayment terms. It applies to most small business loans (including equipment financing, factoring, and sales-based financing) but excludes banks, credit unions, very small lenders (under five transactions yearly), and loans over $2.5 million. The bill defines "commercial financing" as transactions not intended for personal use, creating standardized terms to increase transparency similar to federal consumer lending rules. It directly affects small business owners seeking non-personal financing and the non-bank lenders offering these services.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

Senate Passage

Mar 2026

House of Delegates Passage

Governor

Introduced Feb 6, 2026 Last action Mar 24, 2026

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What changed between versions

First - Commercial Financing - Small Business Truth in Lending Act → Third - Financial Institutions and Activities - Licensing Requirements and Regulation of Commercial Financing · 5 edits

MODERATE

SB 881 was substantially rewritten to shift from a consumer protection focus on 'Small Business Truth in Lending' to a broader regulatory framework covering 'Licensing Requirements and Regulation of Commercial Financing.' The bill now establishes a licensing system for commercial financing providers, adds new definitions for commercial financing transactions, and expands the scope of covered activities under Maryland law.

Scope change

The bill's scope expanded from primarily regulating disclosures and APR calculations to include comprehensive licensing requirements, trade name regulations, and examination procedures for commercial financing providers.

REQUIREMENT

Added requirements for commercial financing providers to obtain a license from the Commissioner of Financial Regulation, with provisions for applications, NMLS information, and enforcement actions.

DEFINITION

Added new definition for 'Commercial Financing Transaction' to clarify when a transaction falls under the new regulatory framework.

SCOPE

Changed the bill's title and purpose to emphasize licensing and regulation of commercial financing rather than just consumer disclosure requirements.

ENFORCEMENT

Added provisions stating that license revocation or suspension does not relieve a person of obligations to pay assessments imposed by the Commissioner.

TECHNICAL

Updated references to relevant Maryland Code Articles and Sections, shifting from Financial Institutions Article to include Commercial Law Article references.

Floor votes · Senate Mar 5, 2026

How they voted

44–0

Passed · 5 other

Total votes 49

Mar 5, 2026

D Democratic36

33 Yea 3

91% Yea

R Republican13

11 Yea 2

84% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 21, 2026

Committee

Referred Economic Matters

lower

Mar 20, 2026

Upper · Passed

Third Reading Passed

upper

Mar 19, 2026

Upper · Passed

Favorable with Amendments {

upper

Mar 19, 2026

Upper · Passed

Favorable with Amendments Report by Finance

upper

Mar 5, 2026

Senate · Passed

Senate Vote: pass (44-0-5)

senate

Feb 6, 2026

Committee

First Reading Finance

upper

1 primary · 0 co-sponsors