SB 728: California Consumer Financial Protection Law: commercial financing.

This bill aims to expand the California Consumer Financial Protection Law to protect small businesses from abusive financial practices. It requires the Department of Financial Protection and Innovation to prescribe rules for registration requirements of commercial financing providers and brokers. Starting January 1, 2027, these providers must register with the Commissioner before offering or providing commercial financing products. The bill prohibits the taking of a confession of judgment or power of attorney before a default is made. It also imposes various duties on commercial financing providers and brokers, ensuring they operate fairly and transparently.