On Jun. 8, 2025, LOU LEG bill approved by governor, became Act 198, effective Aug. 1
Document dated Jun. 8, 2025, received from LOU LEG Jun. 14, summarized Jun. 17.
On Jun. 3, LOU LEG passed bill on revenue-based financing disclosures
LOU LEG passed HB 470 on revenue-based financing transactions disclosure standards.
Enacted LOU FIN 9:3137.10 to provide definitions and disclosure requirements.
Bill Provisions
Revenue based financing transaction means an agreement under which a person engaged in a commercial enterprise sells a percentage of sales, revenue or income.
And person's payment obligation increases and decreases according to volume of sales made or revenue or income received; not for use of forbearance, detention of money.
Provisions specified that amounts charged in a revenue-based financing transaction, whether in the nature of a fee, discount, or otherwise, are not considered interest.
Provided that a written disclosure of the terms of a revenue-based financing transaction must be provided at or before the consummation of the transaction.
Defined information required in each written disclosure of terms of transactions.
Legislative History
On Apr. 4, 2025, bill was introduced in House; on May 12, 2025, bill passed House.
On May 12, 2025, bill was introduced in Senate; on Jun. 1, 2025, amended bill passed.
On Jun. 3, 2025, House concurred with amendments; pending governor review.
Effectiveness
If approved, the bill becomes effective on Aug. 1, 2025.
Jun. 2025 LOU LEG Governor Approval
On Jun. 8, 2025, LOU LEG bill approved by governor, became Act 198, effective Aug. 1
Document dated Jun. 8, 2025, received from LOU LEG Jun. 14, summarized Jun. 17.
Regulators
LOU LEG
Entity Types
Bank; Corp; MSB; Thrift
Reference
Act 198, Bill HB470, 6/8/2025; Bill HB470, 6/6/2025; Citation: LOU FIN 9;
