Small Business Disclosure Bill Passes State Senate with League Requested Amendments

State legislation (S2262) that supplements New Jersey’s “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 the state passed the Senate last week 35-0. The measure was amended in at the NJCUL’s request 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’s sponsor, long-time credit union supporter Sen. Troy Singleton (D-7), submitted the floor amendments which passed 37-0 on December 17.

The bill now joins the Assembly companion (A4561) in awaiting consideration by the Assembly Financial Institutions and Insurance Committee.