On October 20, 2021, the New York Department of Financial Services published a notice in the New York State Register announcing that it has issued a proposed regulation to implement S 5470–B, which requires consumer-like disclosures for “commercial financing” transactions of $2.5 million or less. Comments on the proposal must be submitted by December 19, 2021.
S 5740-B becomes effective on January 1, 2022. In September 2021, DFS published a draft text of the regulation on its website to solicit comment from small businesses that might be affected. DFS received 8 comments and made several changes in response to those comments. Most significantly, DFS modified the draft text to provide that the compliance date for the final regulation will be six months after the date that a notice of adoption is published in the NYS Register. (It should be noted, however, that while S 5740-B requires disclosures to be provided “according to formatting prescribed by” DFS and authorizes DFS to promulgate implementing regulations, it does not delay the effective date until regulations are adopted.)