As state legislatures move deeper into their 2026 sessions, several proposals with potential implications for the equipment leasing and finance industry are beginning to take shape. ELFA’s state advocacy team remains actively engaged with lawmakers, contract lobbyists, and coalition partners to ensure policymakers understand the unique structure of equipment finance and the importance of maintaining clear exemptions for true leases, purchase-money obligations (PMOs), and captive finance transactions.
New York: A4889 Advances to Finance Committee
In New York, Assembly Bill A4889—legislation that would establish a regulatory framework for certain commercial financing transactions—has advanced to the Assembly Finance Committee after being reported favorably out of its previous committee. Notably, this is the same point where the bill stalled during the last legislative session, and based on current discussions in Albany, ELFA’s advocacy team believes a similar outcome remains possible this year.
For the bill to continue advancing, it would still need to clear the Finance Committee and a third committee stop. In addition, the Assembly companion measure has not yet moved or been heard in committee, meaning both chambers would need to advance their respective versions for the legislation to progress.
ELFA and its contract lobby team continue to meet with lawmakers to discuss the potential impact on the equipment finance industry and to advocate for statutory exemptions that recognize the distinct nature of asset-based equipment financing. ELFA representatives were recently in Albany participating in these conversations directly with legislators and staff.
Timing is also a factor. The New York Legislature is currently focused on finalizing the state budget, which typically dominates the legislative agenda through the end of March. As a result, most policy legislation—including proposals like A4889—tends to gain traction later in the spring.
Illinois: Productive Dialogue on Disclosure Legislation
In Illinois, ELFA is monitoring a proposed commercial financing transparency measure, often referred to as a “Truth in Lending” proposal for small business financing. Because the bill’s current structure could inadvertently capture asset-based equipment leases and other commercial transactions, ELFA has been actively engaging with lawmakers to provide additional industry context.
Recent meetings with the bill’s sponsors and the relevant committee chair were constructive and helped clarify how equipment finance transactions operate under established commercial law frameworks. There appears to be growing recognition that the bill should not move forward in its current form without further refinement and clear distinctions between unsecured lending products and asset-based equipment financing.
ELFA’s contract lobby team continues to track the proposal closely as discussions evolve.
Maryland: HB 1007 and Commercial Financing Disclosures
In Maryland, lawmakers are considering House Bill 1007, which would establish disclosure requirements for certain commercial financing transactions provided to small businesses. The proposal would require providers to disclose key metrics—such as the total amount financed, finance charges, and APR—calculated using the methodology from the federal Truth in Lending Act (TILA).
While ELFA supports the goal of transparency for small businesses, the association has raised concerns that the bill could inadvertently capture true leases, purchase-money obligations, and captive finance transactions without appropriate exemptions. ELFA is advocating for targeted amendments to ensure Maryland’s framework aligns with other states that have adopted similar laws while preserving access to efficient, asset-based equipment financing.
As part of this effort, ELFA submitted public testimony to both the House and Senate outlining proposed amendments, working alongside other industry partners to ensure the legislation appropriately recognizes equipment finance structures.
As these legislative sessions continue, ELFA will remain actively engaged in monitoring developments and advocating for policies that support both industry innovation and continued access to capital for businesses across the country.
