SB 6250 Washington Senate · 2025-2026 Regular Session

Concerning the maximum principal amount of small loans.

SB 6250 increases Washington State's maximum small loan amount from $700 to $1,200 (adjusted for inflation annually using the Seattle-area consumer price index), while also capping loans at 30% of a borrower's monthly income - whichever is lower. It limits borrowers to no more than eight small loans in any 12-month period and requires lenders to set due dates based on the borrower's pay schedule. The bill also restricts interest and fees to 15% on the first $500 of principal and 10% on amounts over $500, and prohibits lenders from charging additional fees for loan extensions. These changes directly affect small loan borrowers and licensed lenders operating under Washington's small loan regulations.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 21, 2026 Last action Feb 26, 2026

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What changed between versions

Bill → Substitute Bill · 5 edits

MODERATE

This bill updates the maximum loan amount for small loans from $700 to $1,200 and adjusts the inflation adjustment schedule from annual to biennial. It also clarifies the timeline for setting loan due dates to prevent excessive rollovers and modifies how interest and fees are calculated based on the new loan limits.

Scope change

The bill expands the maximum principal amount of small loans allowed under Washington state law, increasing the cap from $700 to $1,200, and changes the frequency of inflation adjustments.

REQUIREMENT

Increased the maximum principal amount of a small loan from $700 to $1,200, with a provision to adjust this amount biennially based on inflation.

Changed the inflation adjustment schedule from occurring annually to occurring biennially, starting January 1, 2027.

Clarified that the due date for a small loan must be set on or after the borrower's next pay date, or the second pay date if the next one is within seven days, to prevent immediate rollovers.

Updated interest and fee calculation limits to align with the new $1,200 principal cap, allowing 15% on the first $500 and 10% on the amount exceeding $500.

Removed the restriction prohibiting small loans if the borrower's next pay date is within seven days, replacing it with a specific rule requiring the due date to be set on or after the second pay date in such cases.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 4, 2026

Upper · Passed

Minority; do not pass.

upper

Feb 4, 2026

Upper · Passed

Executive action taken in the Senate Committee on Business, Trade & Economic Development at 8:00 AM.

upper

Jan 29, 2026

Upper · Passed

Public hearing in the Senate Committee on Business, Trade & Economic Development at 8:00 AM.

upper

1 primary · 1 co-sponsor