Bill Text: IL SB2234 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Creates the Small Business Financing Transparency Act. Sets forth provisions concerning registration requirements for persons providing commercial financing; additional registration information; registration expiration; functions, power, and duties; subpoena power of the Secretary of Financial and Professional Regulation; disclosure requirements; commercial financing disclosure forms approved for use in other states; violation of disclosure requirements; notification; suspension of registrations, civil penalties, and other discipline; investigation of complaints; confidentiality; appeal and review; registration fees; cease and desist orders; injunctions; exemptions; complaint disclosure; rules; violations; limitations on liability; beginning of registration; beginning of disclosure requirements; severability; and a commercial financing database. Amends the Freedom of Information Act and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 29-0)

Status: (Engrossed) 2024-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB2234 Detail]

Download: Illinois-2023-SB2234-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2234 Introduced 2/10/2023, by Sen. Laura Ellman SYNOPSIS AS INTRODUCED:
New Act
815 ILCS 505/2BBBB new
Creates the Small Business Truth in Lending Act. Sets forth provisions concerning disclosure requirements for sales-based financing, closed-end commercial financing, open-end commercial financing, factoring transactions, renewal financing, and other forms of financing. Provides that all commercial financing shall include a clear and conspicuous notice on how to file a complaint with the Department of Financial and Professional Regulation. Provides that the Department may adopt rules. Provides that upon a finding by the Secretary of Financial and Professional Regulation that a provider has violated the provisions or rules, the provider shall be ordered to pay the Department a civil penalty for each violation of the provisions or any rule not to exceed $10,000 for each violation, or if a violation is willful, $20,000 for each violation. Sets forth provisions concerning cease and desist orders, injunctions, investigation and examination, civil actions, violations, and registration. Provides that a violation of the provisions constitutes an unlawful practice in violation of the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Makes a conforming change in the Consumer Fraud and Deceptive Business Practices Act. Effective immediately.
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A BILL FOR
SB2234 LRB103 28770 BMS 55153 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Small
Business Truth in Lending Act.
Section 3. Applicability. This Act applies to transactions
occurring on or after January 1, 2024.
Section 5. Purpose and construction.
(a) The purpose of this Act is to protect business owners
from predatory business loans.
(b) This Act shall be liberally construed to effectuate
its purpose.
Section 10. Definitions. As used in this Act:
"Commercial financing" means open-end financing,
closed-end financing, sales-based financing, factoring
transaction, or another form of financing that the recipient
does not intend to use the proceeds of primarily for personal,
family, or household purposes. For purposes of determining
whether a financing is a commercial financing, the provider
may rely on any statement of intended purposes or on
electronic signatures or consents by the recipient. The

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statement may be a separate statement signed by the recipient;
may be contained in the financing application, financing
agreement, or other document signed or consented to by the
recipient; or may be provided orally by the recipient so long
as it is documented in the recipient's application file by the
provider. The provider shall not be required to ascertain that
the proceeds of a commercial financing are used in accordance
with the recipient's statement of intended purposes.
"Closed-end financing" means a closed-end extension of
credit, secured or unsecured, recourse or nonrecourse,
including equipment financing that does not meet the
definition of a lease under Section 2A-103 of the Uniform
Commercial Code, that the recipient does not intend to use the
proceeds of primarily for personal, family, or household
purposes. "Closed-end financing" includes financing with an
established principal amount and duration.
"Department" means the Department of Financial and
Professional Regulation.
"Factoring transaction" means an accounts receivable
purchase transaction that includes an agreement to purchase,
transfer, or sell a legally enforceable claim for payment held
by a recipient for goods the recipient has supplied or
services the recipient has rendered that have been ordered but
for which payment has not yet been made.
"Finance charge" means the cost of financing as a dollar
amount. "Finance charge" includes any charge payable directly

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or indirectly by the recipient and imposed directly or
indirectly by the provider as an incident to or a condition of
the extension of financing. "Finance charge" includes all
charges that would be included under 12 CFR 1026.4 as if the
transaction were subject to 12 CFR 1026.4. "Finance charge"
includes any charges as determined by the Secretary. For the
purposes of an open-end financing, "finance charge" means the
maximum amount of credit available to the recipient, in each
case, that is drawn and held for the duration of the term or
draw period. For the purposes of a factoring transaction,
"finance charge" includes the discount taken on the face value
of the accounts receivable.
"Open-end financing" means an agreement for one or more
extensions of open-end credit, secured or unsecured, that the
recipient does not intend to use the proceeds of primarily for
personal, family, or household purposes. "Open-end financing"
includes credit extended by a provider under a plan in which:
(i) the provider reasonably contemplates repeated
transactions; (ii) the provider may impose a finance charge
from time to time on an outstanding unpaid balance; and (iii)
the amount of credit that may be extended to the recipient
during the term of the plan is generally made available to the
extent that any outstanding balance is repaid.
"Person" means an individual, entity, corporation,
partnership, limited liability company, joint venture,
association, joint stock company, trust, or unincorporated

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organization including, but not limited to, a sole
proprietorship.
"Provider" means a person who extends a specific offer of
commercial financing to a recipient. Unless otherwise exempt,
"provider" includes a person who solicits and presents
specific offers of commercial financing on behalf of a third
party. For purposes of determining whether a financing is a
commercial financing, the mere extension of a specific offer
or provision of disclosures for a commercial financing is not
sufficient to conclude that a provider is originating, making,
funding, or providing commercial financing.
"Recipient" means a person who applies for commercial
financing and is made a specific offer of commercial financing
by a provider or an authorized representative of such person.
"Recipient" does not include a person acting as a broker in a
transaction they broker.
"Sales-based financing" means a transaction that is repaid
by the recipient to the provider, over time, as a percentage of
sales or revenue, in which the payment amount may increase or
decrease according to the volume of sales made or revenue
received by the recipient or a transaction that includes a
true-up mechanism where the financing is repaid as a fixed
payment but provides for a reconciliation process that adjusts
the payment to an amount that is a percentage of sales or
revenue.
"Secretary" means the Secretary of Financial and

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Professional Regulation or a person authorized by the
Secretary.
"Specific offer" means the specific terms of commercial
financing, including price or amount, that is quoted to a
recipient based on information obtained from or about the
recipient, that, if accepted by a recipient, shall be binding
on the provider, as applicable, subject to any specific
requirements stated in such terms.
Section 15. Exemptions. This Act does not apply to, and
shall not place any additional requirements or obligations
upon, any of the following:
(1) A bank, trust company, or industrial loan company
doing business under the authority of, or in accordance
with, a license, certificate, or charter issued by the
United States, this State, or any other state, district,
territory, or commonwealth of the United States that is
authorized to transact business in this State.
(2) A federally chartered savings and loan
association, federal savings bank, or federal credit union
that is authorized to transact business in this State.
(3) A savings and loan association, savings bank, or
credit union organized under the laws of this State or any
other state that is authorized to transact business in
this State.
(4) A person acting in its capacity as a technology

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services provider, such as licensing software and
providing support services, to an entity exempt under this
Section for use as part of the exempt entity's commercial
financing program, if such person has no interest,
arrangement, or agreement to purchase any interest in the
commercial financing extended by the exempt entity in
connection with such program.
(5) A lender regulated under the federal Farm Credit
Act, 12 U.S.C. 2001 et seq.
(6) A commercial financing transaction secured by real
property.
(7) A lease as defined in Section 2A-103 of the
Uniform Commercial Code.
(8) Any person or provider who makes no more than 5
commercial financing transactions in this State in a
12-month period.
(9) An individual commercial financing transaction in
an amount over $2,500,000.
(10) A commercial financing transaction in which the
recipient is a vehicle dealer subject to Section 5-101 or
5-102 of the Illinois Vehicle Code, an affiliate of such a
dealer, a rental vehicle company as defined in Section 10
of the Renter's Financial Responsibility and Protection
Act, or an affiliate of such a company pursuant to a
commercial financing agreement or commercial open-end
credit plan of at least $50,000, including any commercial

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loan made pursuant to such a commercial financing
transaction.
Section 20. Sales-based financing disclosure requirements.
A provider subject to this Act shall provide the following
disclosures to a recipient, according to formatting prescribed
by the Secretary, if any, at the time of extending a specific
offer of sales-based financing:
(1) The total amount of the commercial financing, and,
if different from the financing amount, the disbursement
amount after any amount deducted or withheld at
disbursement.
(2) The finance charge.
(3) The estimated annual percentage rate, using the
words annual percentage rate or the abbreviation "APR",
expressed as a yearly rate, inclusive of any fees and
finance charges, and calculated in accordance with the
federal Truth in Lending Act, Regulation Z, 12 CFR
1026.22, based on the estimated term of repayment and the
projected periodic payment amounts, regardless of whether
such act or such rule would require such a calculation.
The estimated term of repayment and the projected periodic
payment amounts shall be calculated based on the
projection of the recipient's sales, which may be referred
to as the projected sales volume. The projected sales
volume may be calculated using the historical method or

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the opt-in method. The provider shall provide notice to
the Secretary on which method the provider intends to use
across all instances of sales-based financing offered in
calculating the estimated annual percentage rate pursuant
to this Section, according to the following:
(i) A provider using the historical method shall
use an average historical volume of sales or revenue
by which the financing's payment amounts are based and
the estimated annual percentage rate is calculated.
The provider shall fix the historical time period used
to calculate the average historical volume and use
such period for all disclosure purposes for all
sales-based financing products offered. The fixed
historical time period shall either be the preceding
time period from the specific offer or, alternatively,
the provider may use average sales for the same number
of months with the highest sales volume within the
past 12 months. The fixed historical time period shall
be no less than one month and shall not exceed 12
months.
(ii) A provider using the opt-in method shall
determine the estimated annual percentage rate, the
estimated term, and the projected payments, using a
projected sales volume that the provider elects for
each disclosure, if they participate in a review
process prescribed by the Secretary. A provider shall,

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on an annual basis, report data to the Secretary of
estimated annual percentage rates disclosed to the
recipient and actual retrospective annual percentage
rates of completed transactions. The report shall
contain such information as the Department may adopt
by rule as necessary or appropriate for the purpose of
making a determination of whether the deviation
between the estimated annual percentage rate and
actual retrospective annual percentage rates of
completed transactions was reasonable. The Secretary
shall establish the method of reporting and may, upon
a finding that the use of projected sales volume by the
provider has resulted in an unacceptable deviation
between estimated and actual annual percentage rate,
require the provider to use the historical method. The
Secretary may consider unusual and extraordinary
circumstances impacting the provider's deviation
between estimated and actual annual percentage rate in
the determination of such finding.
(4) The total repayment amount, which is the
disbursement amount plus the finance charge.
(5) The estimated term is the period of time required
for the periodic payments, based on the projected sales
volume, to equal the total amount required to be repaid.
(6) The payment amounts, based on the projected sales
volume:

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(i) for payment amounts that are fixed, the
payment amounts and frequency (e.g., daily, weekly,
monthly), and, if the payment frequency is other than
monthly, the amount of the average projected payments
per month; or
(ii) for payment amounts that are variable, a
payment schedule or a description of the method used
to calculate the amounts and frequency of payments and
the amount of the average projected payments per
month.
(7) A description of all other potential fees and
charges not included in the finance charge, including, but
not limited to, draw fees, late payment fees, and returned
payment fees.
(8) If the recipient elects to pay off or refinance
the commercial financing before full repayment, the
provider must disclose:
(i) whether the recipient would be required to pay
any finance charges other than interest accrued since
their last payment; if so, disclosure of the
percentage of any unpaid portion of the finance charge
and maximum dollar amount the recipient could be
required to pay; and
(ii) whether the recipient would be required to
pay any additional fees not already included in the
finance charge.

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(9) A description of collateral requirements or
security interests, if any.
Section 25. Closed-end commercial financing disclosure
requirements. A provider subject to this Act shall provide the
following disclosures to a recipient, according to formatting
prescribed by the Secretary, if any, at the time of extending a
specific offer for closed-end financing:
(1) The total amount of the commercial financing, and,
if different from the financing amount, the disbursement
amount after any amount deducted or withheld at
disbursement.
(2) The finance charge.
(3) The annual percentage rate, using only the words
annual percentage rate or the abbreviation "APR",
expressed as a yearly rate, inclusive of any fees and
finance charges that cannot be avoided by a recipient, and
calculated in accordance with the federal Truth in Lending
Act, Regulation Z, 12 CFR 1026.22, regardless of whether
such act or such rule would require such a calculation.
(4) The total repayment amount, which is the
disbursement amount plus the finance charge.
(5) The term of the financing.
(6) The payment amounts:
(i) for payment amounts that are fixed, the
payment amounts and frequency (e.g., daily, weekly,

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monthly), and, if the term is longer than one month,
the average monthly payment amount; or
(ii) for payment amounts that are variable, a full
payment schedule or a description of the method used
to calculate the amounts and frequency of payments,
and, if the term is longer than one month, the
estimated average monthly payment amount.
(7) A description of all other potential fees and
charges that can be avoided by the recipient, including,
but not limited to, late payment fees and returned payment
fees.
(8) If the recipient elects to pay off or refinance
the commercial financing before full repayment, the
provider must disclose:
(i) whether the recipient would be required to pay
any finance charges other than interest accrued since
their last payment; if so, disclosure of the
percentage of any unpaid portion of the finance charge
and maximum dollar amount the recipient could be
required to pay; and
(ii) whether the recipient would be required to
pay any additional fees not already included in the
finance charge.
(9) A description of collateral requirements or
security interests, if any.

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Section 30. Open-end commercial financing disclosure
requirements. A provider subject to this Act shall provide the
following disclosures to a recipient, according to formatting
prescribed by the Secretary, if any, at the time of extending a
specific offer for open-end financing:
(1) The maximum amount of credit available to the
recipient (e.g., the credit line amount), and the amount
scheduled to be drawn by the recipient at the time the
offer is extended, if any, less any amount deducted or
withheld at disbursement.
(2) The finance charge.
(3) The annual percentage rate, using only the words
annual percentage rate or the abbreviation "APR",
expressed as a nominal yearly rate, inclusive of any fees
and finance charges that cannot be avoided by a recipient,
and calculated in accordance with the federal Truth in
Lending Act, Regulation Z, 12 CFR 1026.22, and based on
the maximum amount of credit available to the recipient
and the term resulting from making the minimum required
payments term as disclosed, regardless of whether such act
or such rule would require such a calculation.
(4) The total repayment amount, which is the draw
amount, less any fees deducted or withheld at
disbursement, plus the finance charge. The total repayment
amount shall assume a draw amount equal to the maximum
amount of credit available to the recipient if drawn and

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held for the duration of the term or draw period.
(5) The term of the plan, if applicable, or the period
over which a draw is amortized.
(6) The payment frequency and amounts, based on the
assumptions used in the calculation of the annual
percentage rate, including a description of payment amount
requirements such as a minimum payment amount, and if the
payment frequency is other than monthly, the amount of the
average projected payments per month. For payment amounts
that are variable, the provider should include a payment
schedule or a description of the method used to calculate
the amounts and frequency of payments and the estimated
average monthly payment amount.
(7) A description of all other potential fees and
charges that can be avoided by the recipient, including,
but not limited to, draw fees, late payment fees, and
returned payment fees.
(8) Were the recipient to elect to pay off or
refinance the commercial financing before full repayment,
the provider must disclose:
(i) whether the recipient would be required to pay
any finance charges other than interest accrued since
their last payment; if so, disclosure of the
percentage of any unpaid portion of the finance charge
and maximum dollar amount the recipient could be
required to pay; and

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(ii) whether the recipient would be required to
pay any additional fees not already included in the
finance charge.
(9) A description of collateral requirements or
security interests, if any.
Section 35. Factoring transaction disclosure requirements.
A provider subject to this Act shall provide the following
disclosures to a recipient, according to formatting prescribed
by the Secretary, if any, at the time of extending a specific
offer for a factoring transaction:
(1) The amount of the receivables purchase price paid
to the recipient, and, if different from the purchase
price, the disbursement amount after any amount deducted
or withheld at disbursement.
(2) The finance charge.
(3) The estimated annual percentage rate, using that
term, calculated according to the federal Truth in Lending
Act, Regulation Z, 12 CFR 1026 Appendix J, as a "single
advance, single payment transaction", regardless of
whether such act or such rule would require such a
calculation. To calculate the estimated annual percentage
rate, the purchase amount is considered the financing
amount, the purchase amount minus the finance charge is
considered the payment amount, and the term is established
by the payment due date of the receivables. As an

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alternate method of establishing the term, the provider
may estimate the term for a factoring transaction as the
average payment period based on its historical data over a
period not to exceed the previous 12 months, concerning
payment invoices paid by the party or parties owing the
accounts receivable in question.
(4) The total payment amount, which is the purchase
amount plus the finance charge.
(5) A description of all other potential fees and
charges that can be avoided by the recipient.
(6) A description of the receivables purchased and any
additional collateral requirements or security interests.
Section 40. Other forms of financing disclosure
requirements. The Secretary may require disclosure by a
provider extending a specific offer of commercial financing
which is not an open-end financing, closed-end financing,
sales-based financing, or factoring transaction but otherwise
meets the definition of commercial financing. Subject to such
rules by the Secretary, a provider subject to this Act shall
provide the following disclosures to a recipient, according to
formatting prescribed by the Secretary, if any, at the time of
extending a specific offer of other forms of financing:
(1) The total amount of the commercial financing, and,
if different from the financing amount, the disbursement
amount after any fees deducted or withheld at

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disbursement.
(2) The finance charge.
(3) The annual percentage rate, using only the words
annual percentage rate or the abbreviation "APR",
expressed as a yearly rate, inclusive of any fees and
finance charges, and calculated in accordance with the
relevant sections of the federal Truth in Lending Act,
Regulation Z, 12 CFR 1026.22, or this Act, regardless of
whether such act or such rule would require such a
calculation.
(4) The total repayment amount which is the
disbursement amount plus the finance charge.
(5) The term of the financing.
(6) The payment amounts:
(i) for payment amounts that are fixed, the
payment amounts and frequency (e.g., daily, weekly,
monthly), and the average monthly payment amount; or
(ii) for payment amounts that are variable, a
payment schedule or a description of the method used
to calculate the amounts and frequency of payments,
and the estimated average monthly payment amount.
(7) A description of all other potential fees and
charges that can be avoided by the recipient, including,
but not limited to, late payment fees and returned payment
fees.
(8) If the recipient elects to pay off or refinance

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the commercial financing before full repayment, the
provider must disclose:
(i) whether the recipient would be required to pay
any finance charges other than interest accrued since
their last payment; if so, disclosure of the
percentage of any unpaid portion of the finance charge
and maximum dollar amount the recipient could be
required to pay; and
(ii) whether the recipient would be required to
pay any additional fees not already included in the
finance charge.
(9) A description of collateral requirements or
security interests, if any.
Section 45. Complaint disclosure. All commercial financing
shall include a clear and conspicuous notice on how to file a
complaint with the Department.
Section 50. Disclosure requirements for renewal financing.
If, as a condition of obtaining the commercial financing, the
provider requires the recipient to pay off the balance of an
existing commercial financing from the same provider, then the
provider must disclose the following:
(1) The amount of the new commercial financing that is
used to pay off the portion of the existing commercial
financing that consists of prepayment charges required to

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be paid and any unpaid interest expense that was not
forgiven at the time of renewal. For financing for which
the total repayment amount is calculated as a fixed
amount, the prepayment charge is equal to the original
finance charge multiplied by the amount of the renewal
used to pay off existing financing as a percentage of the
total repayment amount, minus any portion of the total
repayment amount forgiven by the provider at the time of
prepayment. If the amount is more than zero, such amount
shall be the answer to the following question: "Does the
renewal financing include any amount that is used to pay
unpaid finance charge or fees, also known as double
dipping? Yes, [enter amount]. If the amount is zero, the
answer would be No."
(2) If the disbursement amount will be reduced to pay
down any unpaid portion of the outstanding balance, then
the actual dollar amount by which the disbursement amount
will be reduced.
Section 55. Required signature. The provider shall obtain
the recipient's signature, which may be fulfilled by an
electronic signature, on all disclosures required to be
presented to the recipient by this Act before authorizing the
recipient to proceed further with the commercial financing
transaction application.

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Section 60. Additional information. Nothing in this Act
shall prevent a provider from providing or disclosing
additional information on a commercial financing being offered
to a recipient, however, such additional information shall not
be disclosed as part of the disclosure required by this Act. If
other metrics of financing cost are disclosed or used in the
application process of a commercial financing, then these
metrics shall not be presented as a "rate" if they are not the
annual interest rate or the annual percentage rate. The term
"interest", when used to describe a percentage rate, shall
only be used to describe annualized percentage rates, such as
the annual interest rate. When a provider states a rate of
finance charge or a financing amount to a recipient during an
application process for commercial financing, the provider
shall also state the rate as an "annual percentage rate",
using that term or the abbreviation "APR".
Section 65. Rules. The Department is hereby authorized and
empowered to adopt such rules as may in the judgment of the
Secretary be consistent with the purposes of this Act, or
appropriate for the effective administration of this Act,
including, but not limited to:
(1) Rules in connection with the calculation or
determination of any metric required to be disclosed to a
recipient.
(2) Rules as necessary to develop and prescribe

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disclosure formatting to be used by providers that allows
for recipients to easily compare financing options in a
clear and conspicuous manner; such rules may include the
designation and method for disclosing the information
required in this Act or approving adequate forms and
methods already used by providers.
(3) Rules as may define the terms used in this Act and
as may be necessary and appropriate to interpret and
implement the provisions of this Act.
(4) Rules as may be necessary for the enforcement and
administration of this Act.
(5) Rules appropriate for the protection of consumers
in this State.
(6) Rules as may be necessary and appropriate to
define improper or fraudulent business practices in
connection with commercial financing.
(7) Rules as may be necessary to charge and collect
fees necessary to cover the costs of administering this
Act, including, but not limited to, registration,
investigation, and examination fees.
The Department may adopt rules pursuant to this Act upon
this Act becoming law with such rules not to take effect
earlier than January 1, 2024.
Section 70. Penalties.
(a) Upon a finding by the Secretary that a provider has

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violated the provisions of this Act or the rules adopted
pursuant to this Act, the provider shall be ordered to pay the
Department a civil penalty for each violation of this Act or
any rule a sum not to exceed $10,000 for each violation or, if
such violation is willful, $20,000 for each violation.
(b) In addition to any penalty imposed pursuant to
subsection (a), the Secretary may order additional relief,
including, but not limited to:
(i) restitution;
(ii) refund of moneys or return of real property;
(iii) disgorgement or compensation for unjust
enrichment, with any disgorged amounts returned to the
affected businesses, to the extent practicable; and
(iv) limits on the activities or functions of the
person, including, but not limited to, prohibiting a
person from being a provider.
(c) The Secretary shall serve notice of the action,
including, but not limited to, a statement of the reasons for
the action, either personally or by certified mail. Service by
certified mail shall be deemed completed when the notice is
deposited in the U.S. mail.
(d) Within 10 days after service of the action, the person
may request a hearing in writing. The Secretary shall schedule
a hearing within 90 days after the request for a hearing unless
otherwise agreed to by the parties.

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Section 75. Cease and desist order.
(a) The Secretary may issue a cease and desist order if, in
the opinion of the Secretary, a licensee or other person is
violating or is about to violate any provision of this Act or
any rule or requirement imposed in writing by the Department.
The cease and desist order permitted by this Section may be
issued before a hearing.
(b) The Secretary shall serve notice of his or her action,
including, but not limited to, a statement of the reasons for
the action, either personally or by certified mail. Service by
certified mail shall be deemed completed when the notice is
deposited in the U.S. mail.
(c) Within 10 days after service of the cease and desist
order, the licensee or other person may request a hearing in
writing. The Secretary shall schedule a hearing within 90 days
after the request for a hearing unless otherwise agreed to by
the parties.
(d) The Secretary may include in any cease and desist
order such orders as may be reasonably necessary to correct,
eliminate, or remedy the conduct.
(e) The powers vested in the Secretary by this Section are
in addition to any and all other powers and remedies vested in
the Secretary by law, and nothing in this Section shall be
construed as requiring that the Secretary shall employ the
power conferred in this subsection instead of or as a
condition precedent to the exercise of any other power or

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remedy vested in the Secretary.
Section 80. Injunction. The Secretary may, through the
Attorney General, bring an action in the circuit court to
enjoin a person from violating this Act in the name of the
people of the State of Illinois.
Section 85. Investigation and examination. The Department
may investigate or examine providers and persons reasonably
believed to be providers for compliance with this Act and its
implementing rules.
Section 90. Civil action. A civil claim may be asserted
against a provider for violation of this Act. Additionally, a
prevailing person other than a provider may be awarded
reasonable attorney's fees and court costs.
Section 95. Violations.
(a) Nothing in this Act shall be construed to restrict the
exercise of powers or the performance of the duties that the
Illinois Attorney General is authorized to exercise or perform
by law.
(b) Any violation of this Act constitutes an unlawful
practice in violation of the Consumer Fraud and Deceptive
Business Practices Act.
(c) The Illinois Attorney General may enforce a violation

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of this Act as an unlawful practice under the Consumer Fraud
and Deceptive Business Practices Act.
Section 100. No evasion. An agreement, contract, or
transaction that is structured to evade this Act shall be
deemed to be covered by this Act.
Section 105. Registration.
(a) All providers shall be required to pay a registration
fee of $1,000 to the Department and register with the
Department in the manner and form directed by the Secretary
within one year after the effective date of this Act and renew
the registration each calendar year thereafter in the manner
and form directed by the Secretary.
(b) Before December 1 of each year, a provider must pay to
the Secretary, and the Department must receive, a registration
fee of $1,000 for the following calendar year. A provider's
registration shall automatically expire on January 1 of each
year unless the registration fee has been paid prior thereto.
(c) Any commercial financing made or offered by a provider
that violates this Section is null and void and no person or
entity shall have any right to collect, attempt to collect,
receive, or retain any funded amount or charges related to the
commercial financing.
Section 110. Judicial review. All final administrative

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decisions of the Department under this Act are subject to
judicial review under the Administrative Review Law and any
rules adopted under the Administrative Review Law.
Section 900. The Consumer Fraud and Deceptive Business
Practices Act is amended by adding Section 2BBBB as follows:
(815 ILCS 505/2BBBB new)
Sec. 2BBBB. Violations of the Small Business Truth in
Lending Act. Any person who violates the Small Business Truth
in Lending Act commits an unlawful practice within the meaning
of this Act.
Section 997. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes. If
any clause, sentence, provision, or part of this Act or its
application to any person or circumstance is adjudged to be
unconstitutional or invalid for any reason by any court of
competent jurisdiction, that judgment shall not impair,
affect, or invalidate other provisions or applications of this
Act, which shall remain in full force and effect thereafter.
Section 999. Effective date. This Act takes effect upon
becoming law.