Small Business Disclosure Bill Amended at League’s Request

State legislation (S2262) that supplements the “Small Business Loan Act” by applying some disclosure provisions of the federal “Truth in Lending Act” (TILA) to certain loans made to small businesses in New Jersey was amended Monday to exempt credit unions and Credit Union Service Organizations (CUSOs).

Intended to address non-bank lenders, the original language exempted FDIC-insured depositories. The League requested the bill be amended to exempt all federally-insured depositories as well as CUSOs.

The bill now awaits action by the full Senate. The Assembly companion (A4561) is pending consideration in the Assembly Financial Institutions and Insurance Committee.