An Act amending the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, in preliminary provisions, further providing for definitions; and, in protective provisions, providing for truth in lending.

PRINTER'S NO. 649
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 639
Session of
2025
INTRODUCED BY HOWARD, WAXMAN, NEILSON, KHAN, GIRAL, HILL-EVANS,
PIELLI, MADDEN AND SANCHEZ, FEBRUARY 20, 2025
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 20, 2025
AN ACT
Amending the act of January 30, 1974 (P.L.13, No.6), entitled
"An act regulating agreements for the loan or use of money;
establishing a maximum lawful interest rate in the
Commonwealth; providing for a legal rate of interest;
detailing exceptions to the maximum lawful interest rate for
residential mortgages and for any loans in the principal
amount of more than fifty thousand dollars and Federally
insured or guaranteed loans and unsecured, noncollateralized
loans in excess of thirty-five thousand dollars and business
loans in excess of ten thousand dollars; providing
protections to debtors to whom loans are made including the
provision for disclosure of facts relevant to the making of
residential mortgages, providing for notice of intention to
foreclose and establishment of a right to cure defaults on
residential mortgage obligations, provision for the payment
of attorney's fees with regard to residential mortgage
obligations and providing for certain interest rates by banks
and bank and trust companies; clarifying the substantive law
on the filing of and execution on a confessed judgment;
prohibiting waiver of provisions of this act, specifying
powers and duties of the Secretary of Banking, and
establishing remedies and providing penalties for violations
of this act," in preliminary provisions, further providing
for definitions; and, in protective provisions, providing for
truth in lending.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 101 of the act of January 30, 1974
(P.L.13, No.6), referred to as the Loan Interest and Protection
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Law, is amended by adding definitions to read:
Section 101. Definitions.--As used in this act:
* * *
"Provider" means:
(a) A person who extends a specific offer of commercial
financing to a recipient.
(b) 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.
* * *
"Small business" means a business of fewer than five hundred
(500) employees that is presented a specific commercial
financing offer by a provider.
Section 2. The act is amended by adding a section to read:
Section 407.1. Truth in Lending.--A provider subject to this
act shall disclose the following information, if applicable, to
a small business at the time of executing a specific commercial
financing offer and shall obtain a signature of the small
business's agent for each disclosure before executing the
commercial financing transaction:
(1) The total amount of funds provided.
(2) The total dollar cost of the financing.
(3) The term or estimated term.
(4) The method, frequency and amount of each payment.
(5) A description of prepayment policies.
(6) The total cost of the financing expressed as an
annualized rate.
Section 3. This act shall take effect in 60 days.
20250HB0639PN0649 - 2 -
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