An Act To Protect Maine's Small Businesses from High Interest Rates on Commercial and Business Loans
Maine Legislature, Session 127, LD 0889
Committee: Insurance and Financial Services
Sponsors: BECK, KATZ, COOPER, MELARAGNO, TUCKER
Amends: 9-A MRSA §5, 9-B MRSA §432

Legislative Document 
No. 889 
H.P. 608 
House of Representatives, March 12, 2015 
An Act To Protect Maine's Small Businesses from High Interest 
Rates on Commercial and Business Loans 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative BECK of Waterville. 
Cosponsored by Senator KATZ of Kennebec and 
Representatives: COOPER of Yarmouth, MELARAGNO of Auburn, TUCKER of Brunswick. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  9-A MRSA §5-301, as enacted by PL 1973, c. 762, §1, is repealed and the 
following enacted in its place: 
§5-301.  Violations 
1.  Consumer loans.  A creditor, an officer or employee of a creditor or any other 
person who willfully and knowingly violates any of the provisions of this Act or Title 9-B 
relating to a consumer loan or directly or indirectly counsels, aids or abets such a 
violation must be punished by a fine of not more than $2,500 for each offense or by 
imprisonment for not more than 6 months, or by both. 
2.  Commercial and business loans.  A creditor, an officer or employee of a creditor 
or any other person who willfully and knowingly violates any of the provisions of this 
Act or Title 9-B relating to a commercial or business loan or directly or indirectly 
counsels, aids or abets such a violation must be punished by a fine of not more than 
$5,000 for each offense or by imprisonment for not more than one year, or by both.  A 
commercial or business loan made in violation of any provision of this Act or Title 9-B 
may be declared void by a court upon the petition of a person to whom the loan was 
issued. 
Sec. 2.  9-B MRSA §432, sub-§3 is enacted to read: 
3.  Interest; commercial and business loans.  The legal interest rate, whether set 
forth in writing or not, on a commercial or business loan may not directly or indirectly, or 
through interest and expenses, exceed in the aggregate an amount greater than 25% per 
year upon the sum loaned or the equivalent rate for a longer or shorter period.  For the 
purposes of this subsection, the amount to be paid upon any loan for interest or expenses 
includes all sums paid or to be paid by or on behalf of the borrower for interest, 
brokerage, recording fees, commissions, services, extension of loan or forbearance to 
enforce payment and all other sums charged against or paid or to be paid by the borrower 
for making or securing the loan, directly or indirectly, and includes all these sums when 
paid by or on behalf of or charged against the borrower for or on account of making or 
securing the loan, directly or indirectly, to or by any person, other than the lender, if the 
payment or charge was known to the lender at the time of making the loan or might have 
been ascertained by reasonable inquiry.  A loan made in violation of this subsection is 
subject to the penalties and remedies set forth in Title 9-A, section 5-301, subsection 2. 
SUMMARY 
This bill caps the interest rate for commercial or business loans at 25% per year.  The 
bill provides that violations are subject to criminal penalties of up to $5,000 or 
imprisonment for not more than one year or both.  The bill also allows a court to void a 
loan issued in violation of the interest rate caps upon the petition of the person to whom 
the loan was issued.