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Friday, June 13, 2025
Today's Leasing News Headlines New Hires/Promotions in the Leasing Business ######## surrounding the article denotes it is a press release, it was not written by Leasing News nor has the information been verified, but from the source noted. When an article is signed by the writer, it is considered a byline. It reflects the opinion and research of the writer. [headlines] New Hires/Promotions in the Leasing Business
[headlines] Texas Supreme Court Clarifies Usury Law
Texas has been busy lately when it comes to loan regulation. A bill requiring disclosures for commercial sales-based financing (aka merchant cash advances), discussed in my last article, has passed the House and Senate and will become effective on September 1, 2025 unless vetoed by the governor on or before June 22. Not to be outdone by the Legislature, the Texas Supreme Court has been active too. In a decision entitled American Pearl Group, LLC v National Payment Systems, LLC, the top state court justices imposed a lower maximum interest ceiling than previously allowed on commercial loans. The Court clarified that the Texas Finance Code no longer allows lenders to calculate interest by “spreading the interest over the term of the loan in equal parts”. Instead, interest calculations must be calculated based on the declining principal balance during each payment period. In plain language, this is what the formula will look like: Interest for each period= (APR/payment per year) x outstanding principal balance at the start of the period You don’t have to be an accounting genius to see how this will impact lenders’ bottom lines. This law is now in full force and impacts commercial loans in Texas effective immediately. Lenders may recall that the state has a usury cap of 18% per annum. There are significant potential damages for non-compliance with these usury laws, as newly interpreted by the Supreme Court, including forfeiture of the entire loan amount and treble damages. Lenders beware!
[headlines] Change is Here with New SBA 5010 8 Guidelines Change is here. Starting June 1, the new SBA SOP 5010 8 guidelines will transform the business acquisition lending landscape. With billions in SBA loan funds tied to these transactions, lenders must be prepared to adapt, mitigate risks, and seize opportunities. This Coleman webinar is your chance to stay ahead of the curve as we demystify the latest SBA rules and equip you with actionable insights to structure, underwrite, and approve business acquisition loans confidently. Why It Matters Baby Boomers own 40% of U.S. small businesses—and as they prepare to sell and retire, lenders are in a pivotal position. Business acquisition loans represent 24% of SBA loan dollars and 12% of total SBA loans, but they’re riddled with complex challenges and risks. Recent developments, including the indictment of 14 individuals in a $25M SBA loan fraud scheme, further underscore the need for vigilance in your underwriting process. Sophisticated Fraud tactics, such as filing falsified tax returns for lender verification, creating dormant shell companies, parking fake equity injections for three months, and forged documents, pose serious threats to lenders. Understanding these scams can safeguard your portfolio. Key Takeaways: Essential Updates in the New SOP 5010 8
Webinar Available June 18 @2pm ET [headlines] Leasing and Finance Help Wanted
[headlines] I just lost my job - now what?
Question: I have just lost my job! What are a few things I should do right away?
Build on this momentum and complete at least one of the above tasks EVERY day
Do not forget, when discussing your situation to remain positive – no one wants to hear a Debbie Downer. There is an exception: when speaking to your Recruiter, they need to know all aspects (positive and negative) of your situation in order to find a good long-term fit for your next career move. If you find something of interest, contact your recruiter who may be able to learn more as well as open a door for an interview. Emily Fitzpatrick [headlines] Finance and Leasing Industry Recruiters These companies have experience in the finance and leasing industry Second Column: YCS - Year Company Started | YELB - Years in equipment Leasing Business
[headlines] North Dakota Law Regulates The state legislature in North Dakota recently passed House Bill 1127. This bill made a simple amendment to a 1970s-era law called the Money Brokers Act (“MBA”). Despite its name, the MBA is not limited to brokers. It is the primary law regulating consumer and commercial lending in North Dakota. It applies to any person engaged in the act of arranging or providing loans. Such persons are called “money brokers” in the MBA. This amendment adds a two-sentence definition of the word “loan”. When this amendment takes effect, the MBA will define “loan” as follows: Those burdens are significant. The MBA requires money brokers to obtain a license from the North Dakota Department of Financial Institutions (“DFI”). The MBA also caps the maximum amount of fees and charges that can be impose by a money broker at a rate of 36% per year. With this new definition, the North Dakota Department of Financial Institutions (“DFI”) can now issue an order designating any financing product as a loan subject to the MBA. Does the DFI intend to regulate revenue-based financing? That’s unknown at this time. The Commissioner of Financial Institutions provided a memorandum to the legislature stating that the new definition would allow DFI to ensure that North Dakota’s citizens “will have access to new lending products, without sacrificing safeguards”. It is possible that the Commissioner is intending to focus on consumer financing products and not commercial financing. Even if that’s the case, that’s small comfort. 1. There is a contract by which a sum of money is delivered to another.
2. At a future time, the person receiving that money agrees to return an “equivalent” sum.
Even if the DFI does not order that revenue-based financing or factoring are loans, a North Dakota court could take the position that the definition of “loan” is now so broad that these products are already loans under the revised MBA. No DFI order is needed. If a North Dakota court concludes these products are now subject to regulation under the MBA, including its 36% rate cap, then this opens the door for North Dakota businesses that obtain financing to sue any provider that imposes charges that effectively exceed that rate cap. It’s not clear whether the North Dakota legislature understands what it just did. This amendment was part of a legislative package that was primarily focused on data security. The addition of the “loan” definition would be difficult to find if you weren’t looking for it. House Bill 1127 passed with almost unanimous support. Did all those legislators understand that this law could drive away products that offer working capital to businesses that badly need liquidity and don’t have access to a bank line of credit? I doubt it. Does this mean that providers of alternative financing should stop funding in North Dakota? That’s a business decision. We’ll certainly be watching to see if the DFI provides any guidance on any kind of “alternative financing” product it considers to be a loan. But providers of revenue-based financing and factoring should start thinking about whether they might need an MBA license North Dakota and whether they can live with the MBA’s 36% rate cap. According to the North Dakota legislature’s website, this change in the MBA is likely to take effect on August 1, 2025. That gives you some time to think about whether North Dakota is still a viable market for your financial products. Robert F. Gage is a Partner at Hudson Cook LLP. You can email him at (rgage@hudco.com) [headlines] News Briefs Unexpected restaurant chain hauls in $27.4 million Charging Electric Cars, a Bane of Their Owners, Amazon’s return-to-office mandate sparks This A.I. Company Wants to Take Your Job G.O.P. Senators Want Fewer Cuts to Food Aid, Veterans are divided over the Army’s big parade, [headlines] The average used-car price hit $30,000. [headlines]
It's torture all over again for [headlines]
A Las Vegas Sphere-style entertainment complex World's largest almond company to close historic A major wine company is exiting California. [headlines] Gimme that Wine
http://www.youtube.com/watch?v=EJnQoi8DSE8 Local winemaker John Buechsenstein to receive An ancient Greek grape holds promise for California Tariff Threats Trouble Italian Producers [headlines] This Day in History https://leasingnews.org/archives/May2023/05_10.htm#history ------------------------------------------------------------- SuDoku The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler? -------------------------------------------------------------- Daily Puzzle How to play: Refresh for current date: -------------------------------------------------------------- http://www.gasbuddy.com/ -------------------------------------------------------------- Weather See USA map, click to specific area, no commercials -------------------------------------------------------------- Traffic Live--- Real Time Traffic Information You can save up to 20 different routes and check them out with one click, -------------------------------- Wordle https://www.powerlanguage.co.uk/wordle/ |
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