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Increased Transparency for Small Business Factoring Agreements

New rules require factoring companies to clearly disclose all costs and terms of agreements to small businesses before signing. This aims to help small firms better understand their financing and avoid unexpected fees, enhancing their financial security.
Key points
Factoring companies must disclose all fees and terms for agreements under $500,000.
Disclosures include the difference between invoice value and payout, a list of fees, reserve terms, and agreement duration.
A transaction example must be provided to help small businesses easily understand costs.
The act prevents states from imposing additional or inconsistent disclosure requirements.
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Status: Introduced
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Additional Information
Print number: 119_HR_3244
Sponsor: Rep. Lucas, Frank D. [R-OK-3]
Process start date: 2025-05-07
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

CASH Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_3244.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-05-07.

What are the main provisions?

Key points include:

  • Factoring companies must disclose all fees and terms for agreements under $500,000.
  • Disclosures include the difference between invoice value and payout, a list of fees, reserve terms, and agreement duration.
  • A transaction example must be provided to help small businesses easily understand costs.
  • The act prevents states from imposing additional or inconsistent disclosure requirements.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Lucas, Frank D. [R-OK-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Economy