Introduced February 18, 2025
HB680
Log in to followAN ACT relating to commercial financing.
Short title: Kentucky Commercial Financing Disclosure Law
Establish Subtitle 13 of KRS Chapter 286, and create new sections thereof, to define terms; establish exemptions; require certain commercial financing providers to register with the commissioner of the Department of Financial Institutions to engage in business; establish commercial financing trade practice standards and disclosure requirements for commercial financing transactions; establish penalties and exclusive enforcement by the financial institutions commissioner; provide that Subtitle 13 of KRS Chapter 286 may be cited as the Kentucky Commercial Financing Disclosure Law; direct that the provisions apply to contracts entered on or after January 1, 2026; EFFECTIVE January 1, 2026.
Plain-language summary
This bill creates a new state law requiring certain businesses that provide commercial financing to register with Kentucky's Department of Financial Institutions and follow specific rules when offering financing to other businesses. It sets standards for what information must be disclosed to borrowers before they agree to a commercial financing deal. The law would apply to contracts entered on or after January 1, 2026. Who it may affect: small business owners seeking commercial financing, and companies that provide business loans or other commercial financing products in Kentucky.
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Legislative History
Primary Sponsor
Michael Pollock
Representative · House District 051
Bill Text Versions
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