On September 22, 2016, California Governor Jerry Brown signed into law a bill, Senate Bill 777 (SB 777), that revises the California Finance Lenders Law (“CFLL”). Existing law provides that a person making five or fewer commercial loans in a 12-month period is exempt from the requirements of the CFLL if such loans are incidental to the business of the person.
This bill provides an additional exemption for a person who makes one commercial loan in a 12-month period, regardless if such loan is incidental to the business of the person or not.
The changes made by SB 777 will go into effect on January 1, 2017 and expire on January 1, 2022.
The full text of SB 777 can be found at: http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0751-0800/sb_777_bill_20160922_chaptered.pdf.