SB 881 / HB 1007 seeks to improve transparency in commercial financing. Transparency matters. Yet the bill, as written, risks sweeping in equipment financing programs that were never the target of the legislation.

Equipment financing provided through manufacturers and dealers differs from merchant cash advances. These programs often include seasonal payment schedules, deferred payments, and manufacturer incentives. Forcing these transactions into consumer style APR formulas would slow approvals, add compliance costs, and reduce financing options for small businesses.

In other states where broad rules applied, businesses faced slower financing, higher costs, and less flexibility.

Maryland should follow the approach taken by other states and clarify that manufacturer supported, equipment secured financing remains outside the scope of the bill.

Take Action
Ask your legislators to support an amendment to SB 881 / HB 1007 that protects equipment financing for Maryland small businesses.