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Published Article

The Small Business Truth in Lending Act

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On February 10, 2023, Illinois State Senator Laura Ellman introduced SB2234, also referred to as the “Small Business Truth in Lending Act” (Act), in the Illinois House of Representatives. The purpose of the Act is to protect business owners from predatory business loans. If passed, the Act creates new compliance requirements for nonbank commercial lenders in Illinois. These requirements include heightened disclosure obligations for lenders in sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, and renewal financing, all of which are further defined in the Act. Additionally, the Act broadens the disclosure obligations to include lenders engaged in “other forms of financing,” meaning a provider extending a specific offer of commercial financing that is not an open-end financing, closed-end financing, sales-based financing, or factoring transaction, but otherwise meets the definition of commercial financing. Notably, the Act also provides the Illinois Department of Financial and Professional Regulation rulemaking authority in the consumer-lending context, which may add to the regulatory burden that consumer lenders in Illinois currently face. If passed, the Act will apply to transactions occurring on or after January 1, 2024.

Reprinted with permission from the American Bar Association’s Business Law Today March Month-In-Brief: Business Regulation & Regulated Industries.

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Published Article

Financing a Designer Puppy in Illinois? Better Act Fast!

September 1, 2023

Effective January 1, 2024, Illinois HB 3236 prohibits sales finance agencies from purchasing or making loans secured by either of the following contracts relative to the sale of a canine or feline: (a) a retail installment contract; (b) a retail charge agreement; or (c) the outstanding balance under a retail installment contract or a retail charge agreement.

Published Article

Maryland Enacts Student Financing Act

June 1, 2023

On May 8, 2023, Governor Wes Moore of Maryland signed HB 913 into law, creating the Student Financing Act (the Act). Under the Act, “student financing” is defined as an extension of credit to a consumer that is (1) not made, insured, or guaranteed under Title IV of the federal Higher Education Act of 1965, (2) extended to a consumer expressly, in whole or in part, for postsecondary education expenses, regardless of whether it is provided by the institution that the consumer attends, and (3) not a loan secured by real property or a dwelling.

Presentation

Retirement Options for Small Employers

November 17, 2022

Member Kathy Conklin (New Orleans) will present at the 71st Tulane Tax Insitute in New Orleans, Louisiana, on "Retirement Options for Small Employers" on November 17, 2022.

Published Article

The Future of Minority Depository Institutions: An Update from the Office of the Comptroller of the Currency

October 3, 2022

On July 26, 2022, the Office of the Comptroller of the Currency (OCC) issued an update to its 2013 policy statement on minority depository institutions (MDIs). Changes to the policy statement include: (i) clarifying the definition of an MDI, (ii) describing how an MDI may be formed de novo or by designating an existing bank as an MDI, and (iii) providing examples of support to MDIs. The updated policy statement streamlines descriptions of the OCC’s policies, procedures, and programs relative to MDIs.

Alert

What Does the Corporate Transparency Act Mean for Businesses and Incorporators?

January 4, 2021

With a New Year’s day vote, the Senate has overridden President Trump’s veto of the National Defense Authorization Act. The House voted on Monday, December 29 to override the veto. Now, businesses and incorporators will be faced with the Corporate Transparency Act (CTA), which is contained within the National Defense Authorization Act and is designed to combat illegal activities conducted through anonymous shell companies by requiring the reporting of the identity of the “beneficial owners” of companies.

Alert

No Partner/S-Corp Shareholder SALT Deduction Limit on Entity Income Taxes

November 11, 2020

The Internal Revenue Service has announced that it will be issuing proposed regulations clarifying that certain state or local income taxes imposed on and paid by a partnership and/or an S corporation will not be subject to the $10,000 limit on state and local taxes. Specifically, in Notice 2020-75, the IRS announced that it intends to issue proposed regulation to clarify that state and local income taxes imposed on and paid by a partnership or an S corporation are allowed as a deduction by the partnership or S corporation in computing non-separately stated taxable income or loss for the taxable year of payment.