California Senate advances SB 362 to enhance small business financing disclosures

The Assembly Banking and Finance Committee meeting on July 7, 2025, focused on Senate Bill 362, aimed at enhancing the financing disclosure framework for small businesses in California. The bill seeks to simplify the complex landscape of credit options available to small business owners, ensuring they have the necessary information to make informed financial decisions.

Proponents of SB 362 highlighted the challenges small businesses face when navigating various financing offers, which can either support their growth or lead to failure. The bill builds on California's previous efforts initiated in 2018, which established more comprehensive pricing disclosures for commercial financing products. These earlier regulations provided small businesses with clearer information to compare financing options based on the Annual Percentage Rate (APR).

The current legislation aims to further strengthen these disclosure requirements by mandating that small businesses receive clear and consistent information throughout the marketing process. The bill's sponsor expressed gratitude to the committee and stakeholders for their collaboration in refining the bill, making it more transparent and adaptable to the needs of small businesses.

During the meeting, witnesses, including Heidi Pickman from the Cameo Network, were invited to share their insights on the bill's implications for small business financing. The committee's discussions underscored the importance of ensuring that small business owners are equipped with the knowledge necessary to navigate financing options effectively.

As the bill progresses, it is expected to play a crucial role in supporting California's small business community by enhancing transparency and fostering informed decision-making in financing.