I 
118TH CONGRESS 
1ST SESSION H. R. 4192 
To apply the Truth in Lending Act to small business financing, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 15, 2023 
Ms. VELA´ZQUEZ (for herself and Ms. WATERS) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To apply the Truth in Lending Act to small business 
financing, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Fi-
nancing Disclosure Act of 2023’’. 
SEC. 2. APPLICATION OF THE TRUTH IN LENDING TO 
SMALL BUSINESS FINANCING. 
(a) IN GENERAL.—The Truth in Lending Act (15 
U.S.C. 1601 et seq.) is amended by adding at the end 
the following: 
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‘‘CHAPTER 6—SMALL BUSINESS 
FINANCING 
‘‘191. Definitions. 
‘‘192. Application of this title to small business financing. 
‘‘193. Additional disclosures. 
‘‘194. Restrictions on double-dipping. 
‘‘195. Additional provisions. 
‘‘§ 191. Definitions 
‘‘In this chapter: 
‘‘(1) CLOSED-END COMMERCIAL CREDIT.—The 
term ‘closed-end commercial credit’— 
‘‘(A) means a closed-end extension of cred-
it, secured or unsecured, including financing 
with an established principal amount and in-
cluding equipment financing that does not meet 
the definition of a lease under the Uniform 
Commercial Code (U.C.C.—§ 2A–103(j)) the 
proceeds of which the recipient does not intend 
to use primarily for personal, family or house-
hold purposes; and 
‘‘(B) includes financing with an established 
principal amount and duration. 
‘‘(2) CONSUMER FINANCIAL PRODUCT OR SERV-
ICE.—The term ‘consumer financial product or serv-
ice’ has the meaning given that term under section 
1002 of the Consumer Financial Protection Act of 
2010. 
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‘‘(3) DIRECTOR.—The term ‘Director’ means 
the Director of the Bureau. 
‘‘(4) FACTORING.—The term ‘factoring’ means 
a transaction that includes an agreement to pur-
chase, 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. 
‘‘(5) FINANCE CHARGE.— 
‘‘(A) IN
GENERAL.—The term ‘finance 
charge’ means the cost of financing as a dollar 
amount, and includes any charge payable di-
rectly or indirectly by the recipient of the fi-
nancing and imposed directly or indirectly by 
the provider of the financing as an incident to 
or a condition of the extension of financing. 
‘‘(B) CALCULATION
IN
OPEN-END
COM-
MERCIAL
CREDIT
PLANS.—In any open-end 
commercial credit plan, the finance charge shall 
be computed assuming the maximum amount of 
credit available to the recipient, in each case, is 
drawn and repaid at the minimum rate. 
‘‘(C) CALCULATION IN FACTORING TRANS-
ACTIONS.—In any factoring transaction, the fi-
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nance charge shall include the discount taken 
on the face value of the accounts receivable. 
‘‘(D) CALCULATION IN LEASE FINANCING 
TRANSACTIONS.—In any lease financing trans-
action, the finance charge shall include the sum 
of the lease payments and, if there is a fixed- 
price purchase option or a purchase option with 
a price that can be calculated at the time of 
disclosure, the purchase price listed in the con-
tract that the lessee may pay to acquire the 
leased goods at the end of the lease, minus— 
‘‘(i) if the finance company selects, 
manufactures, or supplies the goods to be 
leased, the price that the finance company 
would sell the goods in a cash transaction; 
or 
‘‘(ii) if the finance company does not 
select, manufacture, or supply the goods to 
be leased, the price the finance company 
will pay to acquire the property to be 
leased. 
‘‘(E) INCLUSION
OF
CERTAIN
PREPAY-
MENT CHARGES.— 
‘‘(i) IN GENERAL.—If, as a condition 
of obtaining the offered commercial financ-
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