Senate BillIntroducedFinancial
SB 972: California Financing Law: commercial loans: investment advisers.
What SB 972 does, verified May 18, 2026
This bill allows an investment adviser registered with the US Securities and Exchange Commission to apply for a finance lender license to act on its own behalf and on behalf of client accounts, but only for commercial loans. The licence holder must maintain a surety bond, undergo background checks, meet minimum net worth and commercial loan threshold requirements, and file information with the commissioner under oath. The licence covers any affiliate of the investment adviser that is also registered with the SEC. The bill also exempts investment advisers from usury laws, allowing them to charge higher interest rates on commercial loans.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: May 14 hearing: Held in committee and under submission. (2026-05-14)Alert me
Author and sponsors
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| May. 14, 2026 | May 14 hearing: Held in committee and under submission. |
| May. 08, 2026 | Set for hearing May 14. |
| Apr. 20, 2026 | April 20 hearing: Placed on APPR. suspense file. |
| Apr. 10, 2026 | Set for hearing April 20. |
| Apr. 08, 2026 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0. Page 3757.) (April 7). Re-referred to Com. on APPR. |