Small business lending is more complicated than consumer lending.

Both have term loans and lines of credit but in small business you also have SBA loans, revenue-based financing, merchant cash advances, venture debt, equipment finance, invoice factoring, asset-based financing and more. This leaves a lot of room for unscrupulous lenders to charge hidden fees on some of these products.

This is why California passed Senate Bill 666 back in October which went into effect on January 1. It bans lenders from charging a variety of fees to small businesses (those companies with less than $15 million in revenue and less than 100 employees) in the state.

The new law does not allow ACH fees, account statement fees, lien termination fees, document preparation fees, risk assessment fees and undisclosed prepayment penalties.

With no national law for small business lending equivalent to the consumer Truth in Lending Act, progressive states like California are taking it upon themselves to build a robust framework to protect small business owners.

Featured

California law targeting small-business loan fees takes effect

By Jordan Stutts

The legislation is the latest step in California’s effort to crack down on high-cost small-business loans.

From Fintech Nexus

> Fintech: HSBC Zings into payments competition with Revolut and Wise

lex.substack.com

The mobile payments market size was valued at nearly $1T in 2022 and it is estimated to register a CAGR of over 14.5% for the next 10 years.

Podcast

Tom Bell, CEO of Maast on embedded finance for software companies

The CEO and co-founder of Maast, Tom Bell, talks about embedded finance and why it is a perfect match for software companies

> Listen Now

Webinar

High Performance Payouts: Why real-time Pay to Card is revolutionizing access to cash

Jan 17, 12pm EST

Real-time payouts have never mattered more than they do in today’s digital economy. Across platform economies – serving creator…

Register Now

Also Making News

• USA: What Banks Need to Know to Get Started with Zero-Party Data
  Banks and credit unions think they have all the data they need to craft relevant marketing messages to their customers. Customers, however, think their institutions could be doing better, according to a recent report. But they may have to ask first.

To sponsor our newsletters and reach 220,000 fintech enthusiasts with your message, contact us here.

.pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .box-header-title { font-size: 20px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .box-header-title { font-weight: bold !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .box-header-title { color: #000000 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-avatar img { border-style: none !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-avatar img { border-radius: 5% !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-name a { font-size: 24px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-name a { font-weight: bold !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-name a { color: #000000 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-description { font-style: none !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-description { text-align: left !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a span { font-size: 20px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a span { font-weight: normal !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta { text-align: left !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a { background-color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a { color: #ffffff !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-meta a:hover { color: #ffffff !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-user_url-profile-data { color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data span, .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data i { font-size: 16px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data { background-color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data { border-radius: 50% !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-twitter-profile-data { text-align: center !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data span, .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data i { font-size: 16px !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data { background-color: #6adc21 !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .ppma-author-linkedin-profile-data { border-radius: 50% !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-author-boxes-recent-posts-title { border-bottom-style: dotted !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-multiple-authors-boxes-li { border-style: solid !important; } .pp-multiple-authors-boxes-wrapper.box-post-id-45383.pp-multiple-authors-layout-boxed.multiple-authors-target-shortcode.box-instance-id-1 .pp-multiple-authors-boxes-li { color: #3c434a !important; }

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://www.fintechnexus.com/fintech-nexus-newsletter-january-9-2024-california-law-targeting-small-business-lending-fees-goes-into-effect/