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## California’s Small-Business Lending Disclosure Law Upheld by Federal Judge

A federal judge has upheld California’s small-business lending disclosure law, rebuffing efforts by merchant cash advance lenders that sued the state last year claiming the regulation violated the free speech rights of commercial lenders.

In a ruling on Monday, Judge R. Gary Klausner of the U.S. District Court for the Central District of California granted summary judgment to California’s Department of Financial Protection and Innovation, upholding the state’s small-business lending disclosure law.

The Small Business Finance Association sued the California agency last year for mandating that nonbanks disclose the annual percentage rate, finance charges, and total interest and fees on financings of $500,000 or less. The judge found that the Department of Financial Protection and Innovation’s commercial financing disclosure regulations were lawful under the First Amendment and were not preempted by the federal Truth in Lending Act.

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The AI legalese decoder can help businesses and legal teams navigate and understand complex legal documents, such as the disclosure regulations upheld by the federal judge in California. By using AI to decode legal jargon and complex regulations, businesses can ensure compliance with state laws and better understand their obligations in providing accurate disclosures for small-business customers. This tool can also aid in drafting responses and legal arguments for potential appeals, helping legal teams make informed decisions based on a clear understanding of the legal landscape.

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