I 
118TH CONGRESS 
2D SESSION 
H. R. 9632 
To require certain entities to clearly disclose to small business concerns 
key information about factoring facility agreements prior to entering 
such agreements with such concerns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 17, 2024 
Mr. LUCAS introduced the following bill; which was referred to the Committee 
on Small Business 
A BILL 
To require certain entities to clearly disclose to small busi-
ness concerns key information about factoring facility 
agreements prior to entering such agreements with such 
concerns, 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 ‘‘Capital Access for 
Small Businesses Harmonization Act’’ or the ‘‘CASH 
Act’’. 
VerDate Sep 11 2014 
00:03 Sep 25, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H9632.IH
H9632
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 2. DISCLOSURES FOR SMALL BUSINESSES THAT 
ENTER INTO FACTORING FACILITY AGREE-
MENTS. 
(a) IN GENERAL.—Prior to entering into a factoring 
facility agreement with a small business concern, the pro-
vider for such agreement shall provide to such small busi-
ness concern a written disclosure of the terms of factoring 
transactions under such agreement if— 
(1) the aggregate dollar amount of factoring 
transactions authorized under such agreement, in-
cluding any fees and other charges, is less than 
$500,000; or 
(2) if such agreement does not specify the ag-
gregate dollar amount of factoring transactions au-
thorized under such agreement, the such provider 
and the small business concern reasonably believe 
that the aggregate dollar amount of factoring trans-
actions under such agreement, including any fees 
and other charges, will be less than $500,000. 
(b) DISCLOSURE CONTENTS.—Each disclosure re-
quired under subsection (a) with respect to a factoring fa-
cility agreement shall include the following: 
(1) The amount or percentage, as applicable, of 
the difference between the face value of a claim for 
payment sold in a factoring transaction and the 
amount the provider will pay to small business con-
VerDate Sep 11 2014 
00:03 Sep 25, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H9632.IH
H9632
ssavage on LAPJG3WLY3PROD with BILLS
cern for such claim under such factoring facility 
agreement. 
(2) A list of any fees that may be charged 
under such factoring facility agreement. 
(3) The amount and terms of any reserve under 
such factoring facility agreement. 
(4) The duration of such factoring facility 
agreement. 
(5) An example of a factoring transaction under 
such factoring facility agreement for a claim for pay-
ment sold in a factoring transaction with a face 
value of $10,000 that demonstrates— 
(A) the amount or percentage described in 
paragraph (1); 
(B) any fees that apply with respect to fac-
toring transactions under such factoring facility 
agreement; 
(C) the maximum amount of the reserve 
for such factoring transactions under such fac-
toring facility agreement; and 
(D) the net amount the provider pays to 
the small business concern for such claim in 
such factoring transaction. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to require a provider to provide 
VerDate Sep 11 2014 
00:03 Sep 25, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H9632.IH
H9632
ssavage on LAPJG3WLY3PROD with BILLS
to a small business concern the disclosure required under 
subsection (a) with respect to the modification of a fac-
toring facility agreement. 
SEC. 3. FEDERAL PREEMPTION. 
No State or political subdivision of a State may im-
pose a requirement that is in addition to, or inconsistent 
with, the requirements of this Act with respect to requir-
ing providers to make disclosures to small business con-
cerns regarding the terms of factoring transactions under 
a factoring facility agreement. 
SEC. 4. DEFINITIONS. 
In this Act: 
(1) FACTORING TRANSACTION.—The term ‘‘fac-
toring transaction’’ means an agreement for the sale 
of accounts receivable of a small business concern 
for goods the small business concern has supplied, or 
services the small business concern has rendered, 
but for which payment has not yet been made and 
for which the primary source of repayment to the 
provider is payment by the account debtor on the ac-
count receivable being purchased, except that such 
term does not include sales-based financing. 
(2) FACTORING
FACILITY
AGREEMENT.—The 
term ‘‘factoring facility agreement’’ means an agree-
ment between a provider and another entity that es-
VerDate Sep 11 2014 
00:03 Sep 25, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H9632.IH
H9632
ssavage on LAPJG3WLY3PROD with BILLS
tablishes the terms of factoring transactions between 
such provider and another entity. 
(3) PROVIDER.—The term ‘‘provider’’ means an 
individual or entity that— 
(A) is a purchaser in a factoring trans-
action; and 
(B) is engaged in interstate commerce. 
(4) RESERVE.—The term ‘‘reserve’’ means the 
portion of any payment under a factoring trans-
action that the provider may withhold from the 
small business concern with respect to claims for 
payment sold under such factoring transaction, or 
any portion of such claims, until such claims, or the 
portion thereof, are paid. 
(5) 
SALES-BASED
FINANCING.—The 
term 
‘‘sales-based financing’’ means a financing trans-
action that is repaid by the business over time— 
(A) as a percentage of sales or revenue, in 
which the payment amount may increase or de-
crease according to the volume of sales made or 
revenue received by the business; or 
(B) according to a fixed payment mecha-
nism that provides for a reconciliation process 
that adjusts the payment to an amount that is 
a percentage of sales or revenue. 
VerDate Sep 11 2014 
00:03 Sep 25, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H9632.IH
H9632
ssavage on LAPJG3WLY3PROD with BILLS
(6) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
Æ 
VerDate Sep 11 2014 
00:03 Sep 25, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H9632.IH
H9632
ssavage on LAPJG3WLY3PROD with BILLS