As state legislatures return to work, the equipment leasing and finance industry is once again front and center in conversations about small business access to capital. While every state has its own priorities, a few common themes are already emerging that will shape legislative activity in the months ahead.
For ELFA members, the takeaway is simple: commercial finance is getting more attention, and how these issues are handled will matter.
Commercial Finance Disclosures Remain a Hot Topic
States continue to focus on commercial financing disclosures, particularly for small businesses. Lawmakers want to ensure business owners understand what they’re being offered—especially as financing options continue to expand.
At the same time, the Uniform Law Commission (ULC) is working on a uniform commercial finance disclosure framework, which is already influencing state-level discussions. ELFA is actively engaged in that process to ensure any uniform approach reflects how commercial finance and equipment leasing actually work in practice.
Key questions lawmakers are debating include:
- When an “offer” is really made,
- Who counts as a “financing provider,” and
- Whether true leases should be covered at all.
ELFA’s message remains consistent: disclosures should be clear and useful for business owners, without limiting access to capital or sweeping legitimate leasing products into rules that don’t fit.
Licensing and Enforcement: Focus on the Activity, Not the Label
Another trend to watch is increased attention on licensing and enforcement, even in states that have traditionally taken a lighter approach to commercial lending.
Regulators are looking more closely at how transactions are structured, not just what they’re called. States like Nevada, Minnesota, and South Dakota show how licensing issues can arise unexpectedly based on structure or activity.
The bottom line for members: how a deal is structured matters, and ELFA is working to ensure regulators understand the real-world impact on the industry.
Leasing vs. Lending: Drawing the Right Lines
Several states are also taking a fresh look at the line between true leases and financing arrangements.
While leasing remains a critical tool for business investment, policymakers are increasingly focused on preventing bad actors from misusing lease structures. That makes it even more important to protect legitimate leasing from being caught up in overly broad legislation.
ELFA continues to advocate for clear, consistent treatment of true leases while pushing back on proposals that would unintentionally disrupt traditional leasing models.
What This Means for Members
- Expect continued activity around commercial finance disclosures, including ULC-influenced proposals.
- Watch for licensing issues driven by transaction structure, not product labels.
- Anticipate renewed debates around lease treatment and exemptions.
ELFA’s Advocacy in Action
ELFA is actively monitoring developments, engaging with lawmakers, and building coalitions to ensure state policies recognize the important role equipment leasing and finance play in supporting businesses nationwide.
As always, members are encouraged to stay engaged and share insights as these issues develop throughout the session.
