Regulates commercial finance licensing

Where it stands

Out of committee and scheduled for a vote by the full chamber.

Banks · New York State Assembly

Also referred to Banks · New York State Senate.

Purpose, from the sponsor's memo

This bill would require persons or entities engaging in the business of making or soliciting commercial financing products in the New York state to obtain a license from the superintendent SUMMARY OF PROVISIONS: AND STATEMENT IN SUPPORT: Section 363. Requires persons or entities engaging in the business of making soliciting commercial financing products in the New York state to obtain a license from the superintendent. Commercial financing product means any advance of funds to a commercial or business enterprise made for the purpose of assisting the business with its needs. Making or soliciting means providing commercial financing products to small businesses; marketing commercial financing products for providers of commercial financing products; receiving any compensation from a provider of commercial financing products based on the value of the commercial financing product provided in exchange for a referral of small business or its owner; any entity that partners with federal or state banking organization In which the federal or state banking organ- ization originates the commercial financing product. 363-b. writes already licensed by DFS or entities making five or fewer commercial financing products in a year are exempt. 363-c. Sets forth the application process for a license including fees, capitalization requirements, approval for opening a second location. 363-d. License applicants must have financial responsibility, experi- ence, character, and general fitness to command the confidence of the community and to warrant belief that the business will operate honestly, fairly, and efficiently. License is valid until, it is surrendered by licensee or revoked/suspended by superintendent. 363-e. License must have address of business, name of licensee, date and place of incorporation. Every location used to conduct business must be identified in the application and approved by superintendent. 363-f. Superintendent must approve a change of control of the licensed business. 363-g. Grounds for suspension or revocation of a license include: fail- ure to pay any sum of money lawfully demanded by the superintendent, failure to company with. any demand, ruling or requirement of the super- intendent, violation of this article, or upon finding that a fact or condition exists that would warrant to superintendent to refuse to issue a license if the fact or condition had exited at the time of the original application. 363-h. Superintendent may investigate the business and examine the books for the purpose of discovering violations or securing information lawfully required. 363-i. Licensee must keep and use books in compliance with the applica- ble laws. Licensee must preserve records for at least 2 years after last payment. Licensee must give annual report to superintendent. 363-j. Licensee cannot advertise information that is false, misleading or deceptive. 363-k. No licensee can take a confession of judgement. No instrument can be left blank to fill in after execution. 363-1. Commercial financing product made by entity not licensed under this article is void and there is no right to collect from the borrower. Violation this article is a misdemeanor. 363-m. Regulations 363-n. Severability

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

• Vote: Committee vote · Banks

  Senate BanksFeb 24, 2026Result: passed

  Voted yes (5)Voted no (2)Voted present (0)Absent (0)

  See member positions for the vote on Feb 24, 2026 (Committee vote · Banks)

• Vote: Committee vote · Banks

  Senate BanksFeb 25, 2025Result: passed

  Voted yes (5)Voted no (2)Voted present (0)Absent (0)

  See member positions for the vote on Feb 25, 2025 (Committee vote · Banks)

Full history

1. Feb 26, 2026

   Reported out of committee

   REPORTED AND COMMITTED TO FINANCE

   NY Senate

2. Jan 7, 2026

   Referred to committee

   REFERRED TO BANKS

   NY Assembly

3. Jan 7, 2026

   Referred to committee

   REFERRED TO BANKS

   NY Senate

4. Feb 25, 2025

   Reported out of committee

   REPORTED AND COMMITTED TO FINANCE

   NY Senate

5. Feb 10, 2025

   Referred to committee

   REFERRED TO BANKS

   NY Assembly

About this record

Summary

The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.

Cosponsors

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Party colors

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Source

From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 1, 2026. About our data

Read the record

• Read on NY Senate (opens in a new tab) The official record on nysenate.gov.