Last week, Senator Steven M. Glazer introduced a bill, SB 1482, that would require licensing of "commercial financing providers" and "commercial financing brokers" with the Department of Financial Protection & Innovation under the California Financing Law. The bill defines "commercial financing provider" to mean "a person who extends a specific offer of commercial financing to a recipient, including, but not limited to, a nondepository institution that enters into a written agreement with a depository institution to arrange for the extension of commercial financing by the depository institution to a recipient via an online lending platform administered by the nondepository institution". The bill would define a "commercial financing" to mean "an accounts receivable purchase transaction, including factoring, asset-based lending transaction, commercial loan, commercial open-end credit plan, or lease financing, intended by the recipient for use primarily for a purpose other than a personal, family, or household purpose". The definition of a "commercial financing broker" is considerably longer and both definitions include other defined terms. The bill is quite lengthy and would impose various requirements and prohibitions in addition to the licensing requirement.

Currently, it is a months long process to obtain a lenders or brokers license under the CFL. I fear that this bill will further delay DFPI's processing of license applications as a result of the increase in license applications.