Online business loans

Rules that differ by state

• California: A lender that is not a bank or credit union must give you a disclosure before you sign an offer of $500,000 or less, showing the funds you get, the total dollar cost, the term, the payments, the prepayment rules and an APR, and must get your signature on it. This covers commercial loans of $5,000 or more and lines of credit. Since January 1, 2026, a lender that quotes you a price during an application must also state the APR. (California Financial Code, Division 9.5: Commercial Financing Disclosures (sections 22800 to 22807); DFPI: commercial financing disclosure regulations effective December 9, 2022)
• New York: A lender that is not a bank or other financial institution must give you, with a specific offer of $2.5 million or less, the amount, the amount paid out after fees, the finance charge, an APR calculated as under federal Truth in Lending rules, the total repayment, the term, the payments (including the average monthly payment), other fees, prepayment costs and any collateral. Lenders that make five or fewer deals a year in New York are not covered. (New York Financial Services Law section 804: closed-end commercial financing disclosure requirements; New York Financial Services Law section 802: exemptions)
• Utah: A lender that makes more than five commercial financing deals a year in Utah must register with the state and, before you sign a deal of $1 million or less, disclose the funds you get, the total you will repay, the total dollar cost, the payments and any prepayment costs. No APR is required. Banks and credit unions are exempt. (Utah Code Title 7, Chapter 27: Commercial Financing Registration and Disclosure Act)
• Florida: For deals of $500,000 or less made since January 1, 2024, a lender that is not a federally insured bank or credit union must disclose in writing, at or before signing, the funds provided, the amount actually paid out, the total you will repay, the total dollar cost, the payments and any prepayment costs. No APR is required. Lenders that make five or fewer deals a year in Florida are exempt. (Florida Statutes, chapter 559, part XIII: Florida Commercial Financing Disclosure Law (559.961 to 559.9615))
• Georgia, Kansas: Since January 1, 2024 in Georgia and July 1, 2024 in Kansas, a lender that makes more than five commercial financing deals a year in the state must disclose, before or when you sign a deal of $500,000 or less, the funds provided, the amount actually paid out, the total you will repay, the total dollar cost, the payments and any prepayment costs. No APR is required. An online platform that arranges loans from a partner bank counts as a provider, even though banks and credit unions themselves are exempt. Financing secured by real property is not covered. Brokers may not charge you an upfront fee. The state attorney general enforces the law; it gives you no right to sue. (Georgia SB 90 (2023), as passed (Act 78): commercial financing disclosures, O.C.G.A. 10-1-393.18; Georgia General Assembly: SB 90 (2023-2024 session), status history (Act 78, effective January 1, 2024); Kansas Statutes 75-783: Commercial Financing Disclosure Act, definitions (2024); Kansas Statutes 75-784: required disclosures (2024); Kansas Statutes 75-785 to 75-787: exceptions, brokers and penalties (2024))
• Missouri: A lender that makes more than five commercial financing deals a year with Missouri businesses must disclose, at or before signing a deal of $500,000 or less, the funds provided, the amount actually paid out, the total you will repay, the total dollar cost, the payments and any prepayment costs. No APR is required. An online platform that arranges loans from a partner bank counts as a provider, even though banks and credit unions themselves are exempt. Brokers must register with the Division of Finance and hold a $10,000 bond. The law's start date was February 28, 2025, unless the Division chose to make rules first; the Division publishes the registration form under it. The attorney general enforces the law; it gives you no right to sue. (Revised Statutes of Missouri 427.300: Commercial Financing Disclosure Law; Missouri Division of Finance: consumer credit licensing (commercial financing registration and bond forms))
• Texas: Interest on a business loan may not go above a ceiling the Consumer Credit Commissioner sets each week, which by law is never below 18% or above 28% a year; it was 18% for October 19 to 25, 2026. Banks are not bound by it: federal law lets a bank charge the rate allowed in the state where it is located. Texas's lender license (Finance Code chapter 342) covers only loans mainly for personal, family or household use, not business loans. (Texas Finance Code chapter 303: optional rate ceilings (303.009: never below 18% or above 28% a year for business credit); Texas Finance Code chapter 306: commercial transactions; Texas Office of Consumer Credit Commissioner: interest rates (weekly ceiling); 12 U.S.C. 85: rate of interest on loans by national banks; 12 U.S.C. 1831d: interest rates of state-chartered insured banks; Texas Finance Code chapter 342 (342.005: loans the chapter covers; 342.051: license required))
• Virginia: The general limit on interest is 12% a year, but a business that borrows $5,000 or more cannot use the usury laws to avoid paying, so the interest and fees agreed in the contract stand. Virginia's consumer finance license covers only loans to individuals for personal, family, household or other nonbusiness purposes, not business loans. (Code of Virginia 6.2-303: contracts for more than the legal rate of interest; Code of Virginia 6.2-317: loans of $5,000 or more for business or investment purposes; Code of Virginia 6.2-1501: license required (consumer finance companies))
• Utah: Utah has no cap on interest: the parties to a loan can agree any rate. If the contract names no rate, the rate is 10% a year. Utah's consumer credit code, and the notice a lender must file with the state each year, cover only credit to individuals mainly for personal, family or household purposes, as in federal Truth in Lending law, not business loans. (Utah Code 15-1-1: interest rates, contracted rate, legal rate; Utah Code 70C-1-301: terms have their meaning in the federal Consumer Credit Protection Act; Utah Code 70C-8-202: notification; 15 U.S.C. 1602(i): "consumer" credit transaction defined (Truth in Lending Act))
• Florida: Interest above 18% a year (simple interest) is usurious on a loan or line of credit of $500,000 or less; above $500,000 the limit is 25%. Knowingly charging more than 25% a year is a crime, and more than 45% a felony. Banks are not bound by these limits: federal law lets a bank charge the rate allowed in the state where it is located. (Florida Statutes chapter 687: interest and usury (687.02 and 687.071); 12 U.S.C. 85: rate of interest on loans by national banks; 12 U.S.C. 1831d: interest rates of state-chartered insured banks)
• Connecticut: The general limit on interest is 12% a year. For a loan to a business that is used in the business, the limit is 17 percentage points above a deposit index the Banking Commissioner sets each year when more than $10,000 and up to $250,000 is owed, and there is no limit above $250,000. Banks and credit unions are not bound by these limits. A lender cannot go to court to collect a loan made above the limit that applies. Connecticut's small loan license, needed for loans of $50,000 or less above 12% APR, does not cover loans for business, farm, industrial or government use. (Connecticut General Statutes chapter 673: interest (37-4, 37-8 and 37-9); Connecticut General Statutes 36a-555 and 36a-556: small loan defined; license required (chapter 668))
• Kansas: Kansas's 15% limit on interest does not apply to loans made mainly for a business or a farm. Kansas's supervised lender license covers only loans to individuals mainly for personal, family or household purposes, not business loans. (Kansas Statutes 16-207: contract rate of interest and the transactions it does not cover (2024); Kansas Statutes 16a-1-301: definitions (consumer loan, supervised loan) (2024); Kansas Statutes 16a-2-301: authority to make or service supervised loans (2024))
• Arizona: Arizona has no cap on a rate agreed in writing: the parties can agree any rate. Without a written rate, interest is 10% a year. Arizona's consumer lender license covers only loans of $10,000 or less to individuals for personal, family or household purposes, not business loans. Anyone in the business of making or arranging loans or credit for a fee paid before the loan, or a promise to lend, is made must register as an advance fee loan broker with the financial institutions division of the Department of Insurance and Financial Institutions, and advertising such a service counts as being in the business. Banks, credit unions, consumer lenders, licensed mortgage brokers and bankers, real estate licensees and people lending their own money are left out. (Arizona Revised Statutes 44-1201: rate of interest for a loan or indebtedness; Arizona Revised Statutes 6-601: definitions (consumer, consumer loan); Arizona Revised Statutes 6-603: consumer lender license; Arizona Revised Statutes 6-1301: definitions (advance fee, advance fee loan broker); Arizona Revised Statutes 6-1302: registration required; exemptions; Arizona Revised Statutes 6-1303: application for registration; Arizona Revised Statutes 6-101: definitions (deputy director of the financial institutions division))
• Missouri: A lender and a business can agree in writing any rate of interest, fees and terms on a loan to a corporation, partnership or LLC, or on credit mainly for a business or a farm. Missouri's consumer credit lender license covers only loans for personal, family or household purposes, not business loans. (Revised Statutes of Missouri 408.035: unlimited interest, when allowed; Missouri Revised Statutes 367.100: definitions (consumer credit loans, lender); Missouri Revised Statutes 367.110: license required)
• Washington: The general limit on interest is 12% a year, or 4 percentage points above the 26-week Treasury bill rate if that is higher. But a corporation, partnership or other organization, or anyone borrowing mainly for a business, cannot plead usury or sue under the usury law. Washington's Consumer Loan Act license does not cover loans mainly for business, commercial or farming purposes, unless the loan is secured on the borrower's main home. (Revised Code of Washington 19.52.020: highest rate permissible; Revised Code of Washington 19.52.080: no usury defense when the transaction is mainly for business; Revised Code of Washington 31.04.025: application of the Consumer Loan Act (subsection (4)(e): business, commercial and agricultural loans))
• Minnesota: There is no limit on interest, fees or other charges on credit to a corporation, LLC, partnership, cooperative or other organization. A sole proprietor's business loan of less than $100,000 may carry at most 4.5 percentage points above the Federal Reserve's discount rate; at $100,000 or more, under a written contract the borrower signs, there is no limit. A lender that charges a sole proprietor more than that limit, on a loan under $100,000, needs a regulated loan license from the state. (Minnesota Statutes 334.022: credit to organizations; Minnesota Statutes 334.011: rates of interest on business and agricultural loans; Minnesota Statutes 334.01: rate of interest (subdivision 2: contracts of $100,000 or more); Minnesota Statutes 56.01: necessity of license (Minnesota Regulated Loan Act); Minnesota Statutes 56.131: maximum rates and charges (loans up to $100,000))
• Pennsylvania: Pennsylvania's 6% limit on interest applies only to loans of $50,000 or less, and never to business loans, whatever their size. Pennsylvania's lender license, under the Consumer Discount Company Act, is needed only to charge more on a loan of $25,000 or less than the law otherwise allows, so it does not reach business loans. (Pennsylvania Loan Interest and Protection Law (Act 6 of 1974), section 201: maximum lawful interest rate; Pennsylvania Consumer Discount Company Act (Act 66 of 1937), section 3: license required)
• California: A lender that is not a bank or credit union needs a California Financing Law license from the Department of Financial Protection and Innovation to make business loans, and a broker who arranges them needs one too. The state constitution limits interest on a business loan to the higher of 10% a year or 5 percentage points above the Federal Reserve Bank of San Francisco's discount rate, but banks, credit unions and licensed lenders are exempt from that limit. (California Constitution, article XV, section 1: usury; California Financial Code 22100: license required for a finance lender or broker; California Financial Code 22009: finance lender includes a lender making commercial loans; California Financial Code 22002: licensees are a class exempt from the constitution's usury limit; California Financial Code 22050: banks, credit unions and others the law does not cover; California Financial Code 22502: commercial loan defined ($5,000 or more, or open-end credit, for business))
• New York: The civil limit on interest is 16% a year, but a corporation cannot use it as a defense, and it does not apply to loans of $250,000 or more. Charging more than 25% a year is criminal usury on loans under $2.5 million, and a corporation can raise that as a defense. Banks are not bound by these limits: federal law lets a bank charge the rate allowed in the state where it is located. (New York General Obligations Law 5-501: rate of interest; usury forbidden (subdivision 6: loans of $250,000 and $2.5 million or more); New York Banking Law 14-a: the maximum rate is 16% a year; New York General Obligations Law 5-521: corporations may not plead usury, except criminal usury; New York Penal Law 190.40: criminal usury in the second degree (over 25% a year); 12 U.S.C. 85: rate of interest on loans by national banks; 12 U.S.C. 1831d: interest rates of state-chartered insured banks)
• Vermont: Vermont has no cap on the interest a business can agree to: its usual limits do not cover a corporation's debts, or credit for a business that earns income, unless the loan pays for a home of four units or fewer that the borrower lives in. A lender that is not a bank or other financial institution needs a lender license from the Department of Financial Regulation, and anyone paid to arrange or find a loan, or to pass on leads, needs a loan solicitation license. There are a few exceptions, such as a seller financing what it sells, and neither license is needed for a commercial loan of $1 million or more. (Vermont Statutes 9 V.S.A. 46: exceptions to the legal rates (obligations of corporations and of income-producing businesses); Vermont Statutes 9 V.S.A. 41a: legal rates; Vermont Statutes 8 V.S.A. 2201: licenses required (subsection (h): not commercial loans of $1,000,000 or more); Vermont Statutes 8 V.S.A. 2200: definitions (loan solicitation and lead generation); Vermont Statutes 8 V.S.A. 11101: definitions (the Commissioner of Financial Regulation))
• Florida: A loan broker may not charge you any fee before the loan closes. This covers anyone paid to arrange or help you get a loan or line of credit who is not a bank, credit union or other lender licensed for it. (Florida Statutes 687.14 and 687.141: loan brokers defined; advance fees prohibited)
• North Dakota: Anyone who makes or arranges loans or leases for a borrower in North Dakota, or advertises that they can find a lender, needs a money broker license from the Department of Financial Institutions, whatever the loan is for. Banks, credit unions, lenders the state already licenses and sellers financing what they sell are exempt. (North Dakota Century Code chapter 13-04.1: money brokers (13-04.1-01.1, 13-04.1-02 and 13-04.1-02.1))
• South Dakota: A lender that is not a bank or other federally insured financial institution needs a money lending license from the Division of Banking, and an unlicensed lender cannot collect more than the amount it lent. Licensed lenders may charge at most 36% a year, all fees included, but that cap does not apply to a business loan of $5,000 or more to a borrower with an EIN, unless it is secured by a vehicle the business already owns. A seller financing what it sells, and a lender making five or fewer loans a year with no more than $4 million owed to it, need no license. (South Dakota Codified Laws 54-4-52: license required to engage in the business of lending money; South Dakota Codified Laws 54-4-36: definitions (business of lending money; loan); South Dakota Codified Laws 54-4-37: banks and other federally insured financial institutions exempt; South Dakota Codified Laws 54-4-37.1: five or fewer loans in twelve months, up to $4 million outstanding; South Dakota Codified Laws 54-4-44: 36% maximum finance charge for licensees; South Dakota Codified Laws 54-4-44.4: business-to-business lending exempt from the maximum; South Dakota Codified Laws 54-4-64: sellers financing their own goods or services; South Dakota Codified Laws 54-4-76: loans by unlicensed lenders uncollectible except for principal)
• Delaware: A lender that is not a bank, federal credit union or insurance company needs a license from the State Bank Commissioner to lend in Delaware (a lender making five or fewer loans a year needs none), and a licensed lender can charge any rate the loan agreement sets. Other lenders are limited to 5 percentage points above the Federal Reserve discount rate, but there is no limit on a loan of more than $100,000 that is not secured on the borrower's home, and a corporation, LLC, limited partnership or business trust cannot plead usury. (Delaware Code title 5, chapter 22, subchapter I: licensed lenders (5 Del. C. 2202: license required); Delaware Code title 5, chapter 22, subchapter III: closed end credit (5 Del. C. 2229: interest as the agreement provides); Delaware Code title 6, chapter 23: interest (6 Del. C. 2301 and 2306))
• Maryland: A lender can charge any rate on a loan to a corporation, or on a business loan of more than $15,000 that is not secured on the borrower's home (more than $75,000 if it is). Smaller business loans to anyone else fall under Maryland's general limits, which are lower and depend on how the loan is made. Lending at the higher rates Maryland allows on these smaller loans (up to 24% a year when unsecured, or secured by something other than savings) needs an installment loan license from the state, for a lender in that business or one making more than five such loans a year. Banks, savings and loan associations and credit unions are exempt. (Maryland Code, Commercial Law 12-103: maximum rates of interest (subsection (e): loans to corporations and commercial loans); Maryland Code, Commercial Law 12-101: definitions (commercial loan); Maryland Code, Financial Institutions 11-301: definitions (installment loan); Maryland Code, Financial Institutions 11-302: scope and exemptions; Maryland Code, Financial Institutions 11-303: license required)
• Iowa: Iowa has no cap on a rate agreed in writing for money borrowed mainly for a business or a farm, or borrowed by a corporation, and the borrower cannot plead usury afterward. Iowa's regulated loan license is needed only to charge more on a smaller loan than the law would otherwise allow, so it does not reach these business loans. A loan broker, anyone paid to find or help you get a loan or credit card, may not take a fee until it has actually got you the loan, and the agreement must be in writing, signed, with a copy for you. If the broker breaks the agreement or the law in a material way, you can cancel it and recover what you paid, a penalty of twice the fee asked and attorney fees, and the broker commits a crime (a serious misdemeanor). There is no broker license. Lawyers, accountants, banks, credit unions, insurers and licensed mortgage and loan companies are left out. (Iowa Code 535.2: rate of interest (subsection 2: persons who may agree in writing to any rate); Iowa Code 536.1: Iowa Regulated Loan Act, license required; Iowa Code chapter 535C: Iowa Loan Brokers Act (535C.1, 535C.2A, 535C.6, 535C.7 and 535C.10))
• Kentucky: On a written loan of more than $15,000 the parties can agree any rate. On $15,000 or less the limit is 19% a year, or 4 percentage points above the Federal Reserve discount rate if that is lower. A corporation, LLC, limited partnership or business trust cannot plead usury, unless its main asset is a one- or two-family home. A lender that charges more than this limit on a loan of $15,000 or less needs a consumer loan company license from the state. A licensed lender may then charge up to 3% a month on a loan of $5,000 or less, and a little less on larger ones. A loan broker, anyone paid to arrange, or help or advise you to get, a loan, credit card or line of credit, may not take any fee before the loan closes, or mislead you. Arranging credit for a partnership or corporation only for business purposes is left out, so the rule protects sole proprietors more than companies; banks, credit unions, licensed lenders, attorneys, securities and real estate firms acting under their licenses are left out too. A borrower who loses money can sue for up to three times the loss, plus attorney's fees, and the Attorney General enforces the law as an unfair practice under the Consumer Protection Act. (Kentucky Revised Statutes 360.010: legal interest rate; agreement for a higher rate; Kentucky Revised Statutes 360.025: excess interest no defense for a corporation; Kentucky Revised Statutes 360.027: excess interest no defense for a limited partnership, LLC or business trust; Kentucky Revised Statutes 286.4-420: license required for finance companies; Kentucky Revised Statutes 286.4-530: charges a licensed consumer loan company may make; Kentucky Revised Statutes 367.380: definitions for the loan broker law; Kentucky Revised Statutes 367.381: loan brokers, prohibited acts; Kentucky Revised Statutes 367.387: remedies for borrower)
• District of Columbia: A loan of more than $2,500 for a business, professional or commercial activity can carry any agreed rate. Below that, the limit is 24% a year. A lender that charges more than 6% a year needs a District money lender license, unless it is a bank, a small business investment company or another lender the law exempts. The license rule does not cover loans over $25,000, loans to a borrower who lives, does business or is incorporated outside the District, or some loans to corporations. (Code of the District of Columbia 28-3301: rate of interest expressed in contract (subsection (d): business loans); Code of the District of Columbia 26-901: businesses required to procure license; Code of the District of Columbia 26-910: exemption of certain persons and businesses; Code of the District of Columbia 26-912: exemption of certain loans)
• Louisiana: A company, or anyone borrowing for a business or a farm, can agree any rate of interest and cannot plead usury afterward. But if you default on a fixed-rate loan, the lender cannot raise the rate above 18% a year (21% on loans over $250,000) or 3 percentage points over the original rate, whichever is higher, unless you agree in writing after the default. Louisiana's lender license, under its Consumer Credit Law, covers only loans mainly for personal, family or household purposes, not business loans. Its loan broker rules likewise cover only brokers of consumer loans (and some home loans), not business loans. (Louisiana Revised Statutes 9:3509: rate of interest for commercial, business or agricultural loans; rate upon default; Louisiana Revised Statutes 9:3516: definitions (consumer loan); Louisiana Revised Statutes 9:3557: authority to make consumer loans; Louisiana Revised Statutes 9:3572.1: loan broker defined (consumer loans))
• South Carolina: Outside consumer loans, a written contract can set any rate of interest. Without one, the limit is 6% a year. South Carolina's supervised lender license covers only consumer loans, to individuals mainly for personal, family or household purposes, not business loans. A loan broker, anyone paid to arrange or help you get a loan, credit card or line of credit, may not take any fee before the loan closes, or mislead you. Banks, credit unions, consumer finance companies, attorneys, registered mortgage brokers and other licensed firms acting under their licenses are left out. There is no broker license: the Department of Consumer Affairs enforces the law, and can ask the Administrative Law Court to order refunds and fines of up to $5,000 for each violation. (South Carolina Code 37-10-106: maximum rate of interest (any rate by express written agreement); South Carolina Code 37-3-104, 37-3-501 and 37-3-502: consumer loan and supervised loan defined; license to make supervised loans; South Carolina Code 34-36-10 to 34-36-50: loan brokers (advance fees prohibited))
• Montana: A lender that is not a bank, credit union or other regulated lender may charge at most 15% a year, or 6 percentage points above the bank prime rate if that is higher, and there is no exception for business loans. A lender that charges more forfeits twice the interest. Banks and other regulated lenders have no limit, and neither does finance for sales between merchants. Montana's consumer loan license covers only loans to individuals mainly for personal, family or household purposes, not business loans. (Montana Code Annotated 31-1-107: interest rate allowed by agreement; Montana Code Annotated 31-1-108: penalty for usury; Montana Code Annotated 31-1-111: definition of regulated lender; Montana Code Annotated 31-1-112: regulated lenders and merchant finance exempt; Montana Code Annotated 32-5-102: definitions (consumer loan); Montana Code Annotated 32-5-103: engaging in business of making consumer loans restricted)
• West Virginia: No interest limit applies to a loan taken out mainly for a business, though a loan to an individual rather than a company must be $20,000 or more, and farming does not count as a business for this rule. Otherwise the general limit on a written contract is 8% a year, though other laws allow some lenders more. West Virginia's regulated consumer lender license is needed only for loans above 18% a year to individuals for personal, family, household or farming purposes, of $45,000 or less or secured by land. Other business loans need none. (West Virginia Code 47-6-11: certain business debts exempt from usury laws; West Virginia Code 47-6-5: legal rate of interest; agreements in writing; West Virginia Code 46A-1-102: definitions (consumer loan, regulated consumer loan); West Virginia Code 46A-4-101: authority to make loans)
• Wyoming: Wyoming's consumer credit code, with its rate limits and its lender license, covers only loans to individuals mainly for personal, family or household use, of $75,000 or less. A loan to a company, or for a business, is outside it. (Wyoming Statutes title 40 (40-14-302: scope and license; 40-14-304: consumer loan defined; 40-14-354: loans other than consumer loans))
• Alaska: On a loan of $25,000 or less, interest may not go above 10% a year or 5 percentage points over the Federal Reserve discount rate, whichever is higher. Above $25,000 there is no limit. A bank, credit union or insurance company may not take a share of your ownership or profits on top of the interest, unless the loan is $1 million or more for five years or more. A lender that is not a bank, savings bank, trust company, savings and loan association or credit union needs a small loan license from the state to charge more than that limit on a loan of $25,000 or less, whatever the loan is for. Licensees may charge up to 3% a month on the first $850 of the balance, 2% a month on the part from $850 to $10,000, and a rate agreed in the contract on the part from $10,000 to $25,000. (Alaska Statutes 45.45.010: legal rate of interest; Alaska Statutes 06.20.010 and 06.20.230: Alaska Small Loans Act, license required and maximum interest)
• Maine: Outside consumer credit, the parties can agree any finance charge, unless another law sets a limit for that kind of credit. Maine's supervised lender license covers only consumer loans, to individuals mainly for personal, family or household purposes, not business loans. (Maine Revised Statutes title 9-A, section 2-601: finance charge for other credit transactions; Maine Revised Statutes title 9-A, section 1-301: definitions (consumer loan, supervised loan); Maine Revised Statutes title 9-A, section 2-301: authority to make or service supervised loans)
• New Mexico: No New Mexico interest limit applies when the borrower is a company, LLC or other business entity, even if an owner also signs or guarantees the loan. A business loan of $500,000 or more, to anyone, can carry any rate the parties agree. A loan of $5,000 or less may be made only under the state's bank installment loan or small loan laws. A lender that is not a bank, savings and loan association or credit union needs a small loan license from the state to lend $10,000 or less, whatever the loan is for. Advances of $10,000 or less under a written agreement for a larger loan or line of credit are outside it, and so are loans to dealers against goods they hold for resale. (New Mexico Statutes 56-8-9: excessive charges prohibited; applicability of maximum rates (official compilation, NMOneSource); New Mexico Statutes 58-15-2 and 58-15-3: New Mexico Small Loan Act of 1955, definitions and license required (official compilation, NMOneSource))
• Indiana: Indiana's rate limits for consumer loans, and its crime of loansharking, cover only loans to individuals mainly for personal, family or household use. A business loan is outside them. Where the parties agreed no rate, interest is 8% a year. Indiana's lender license covers only consumer loans, not business loans. (Indiana Code 37-2-2-13 and 37-2-2-13.3: consumer loan and consumer related loan defined; Indiana Code 35-45-7: loansharking (sections 2 and 3: the offence, and the loans it applies to); Indiana Code 24-4.6-1-102: rate in absence of agreement; Indiana Code 37-2-4-23: authority to make consumer loans; license required)
• Alabama: On a loan of $2,000 or more, the parties can agree any rate, and no one who owes the debt, a guarantor included, can rely on the usury laws. Alabama's consumer rules against unconscionable terms still apply. Below $2,000, a written contract may charge at most 8% a year, unless another law allows more. A lender that is not a bank, savings and loan association or credit union needs a small loan license from the state to charge more than the law otherwise allows on a loan of less than $1,500. (Code of Alabama 8-8-5: loans, credit sales, etc., of $2,000 or more; Code of Alabama 8-8-1: maximum rates of interest, generally; Code of Alabama 5-18-4: Alabama Small Loan Act, license required; exemptions)
• Ohio: Ohio's general limit is 8% a year, but the parties can agree any rate on a loan of more than $100,000, or on a business loan to a company, partnership, sole proprietor or other business owner, unless it is secured by the borrower's wages or household goods. A lender that is not a bank, savings bank, trust company, savings and loan association or credit union needs a license from the state (a small loan license or one of Ohio's other lender licenses) to be in the business of lending $5,000 or less, whatever the loan is for; so does anyone paid to arrange such a loan. Ohio's credit services organization law, which bars fees for getting someone credit until the credit is extended, leaves out people seeking a business loan, so it does not reach these loans. (Ohio Revised Code 1343.01: maximum rate of interest; Ohio Revised Code 1321.02: license required (Ohio Small Loan Act); Ohio Revised Code 4712.01: Ohio Credit Services Organization Act, definitions)
• Michigan: Michigan's general limit is 7% a year, agreed in writing. On credit to a corporation, partnership, cooperative, association, trust or estate, or to a person who gives the lender a sworn written statement of the business purpose, a bank, savings bank, savings and loan association, credit union, insurance company or manufacturer's finance company can agree any rate in writing, and any other lender up to 25% a year. Above 25% is criminal usury unless the law allows it. Michigan's regulatory loan license covers only loans to individuals for personal, family or household use, not business loans. (Michigan Compiled Laws 438.31: interest rate; Michigan Compiled Laws 438.61: credit to business entities; Michigan Compiled Laws 438.41: criminal usury; Michigan Compiled Laws 493.1 and 493.2: Regulatory Loan Act, definitions and license required)
• Wisconsin: Wisconsin's limit of 12% a year does not apply to loans to corporations or LLCs, or to loans of $150,000 or more unless they are secured on the one- to four-family home the borrower lives in. Wisconsin's licensed lender license is needed to make consumer loans above 18% a year, not business loans. (Wisconsin Statutes 138.05: maximum rate; corporations (subsections 5 and 7); Wisconsin Statutes 138.09: licensed lenders (subsection 1g: business and consumer loan defined); Wisconsin Statutes 421.301: definitions (subsection 17: customer))
• Oregon: On a business or farm loan of $50,000 or less, interest may not go above 12% a year or 5 percentage points over the Federal Reserve discount rate, whichever is higher. Above $50,000 there is no limit. Banks and other financial institutions, trust companies and licensed consumer finance lenders are not bound by this limit, and neither are loans secured by a first lien on land or guaranteed by a federal agency. A lender, or a broker paid to arrange the loan, needs a consumer finance license from the state to make loans of $50,000 or less repaid in installments over more than 60 days, whatever the loan is for. Licensees may charge up to 36% a year, or 30 percentage points over the Federal Reserve's discount rate if that is higher. (Oregon Revised Statutes 82.010 and 82.025: legal rate of interest; exemptions; Oregon Revised Statutes 725.010, 725.045 and 725.340: Oregon Consumer Finance Act, definitions, license required and interest)
• North Carolina: Any rate can be agreed on a loan to a business entity, on a loan a person takes mainly for business, or on any loan of $300,000 or more, and the borrower cannot plead usury. Otherwise the limit on a loan of $25,000 or less is 16% a year, or more when Treasury bill rates are high. North Carolina's consumer finance license is needed only to charge more on a loan of $25,000 or less than the law otherwise allows, so it does not reach these business loans. A loan broker, anyone paid to find or help you get a loan, credit card, line of credit or lease, may not take any fee before the loan closes, except reasonable fees passed on to third parties for appraisals, surveys, title checks and credit reports. The same goes for a lender that charges you just to consider a loan, unless it lent more than $1 million in North Carolina the year before. The broker must give you a disclosure document at least seven days before you sign or pay anything, file it with the Secretary of State before advertising, hold a $10,000 bond or trust account, and put the contract in writing. If it misleads you, breaks the law or does not try hard to get you a loan, you can void the contract and recover what you paid, plus damages and attorney's fees. Attorneys, accountants, securities dealers, insurers and licensed mortgage firms on home loans are left out. (North Carolina General Statutes 24-9: loans exempt from rate and fee limitations; North Carolina General Statutes 24-1.1: contract rates and fees; North Carolina General Statutes 53-166: North Carolina Consumer Finance Act, scope; North Carolina General Statutes chapter 66, article 20: Loan Brokers (66-106 to 66-112))
• Nevada: The parties can agree any rate of interest, compounding and fees, as long as they are written down. A lender that is not a bank, savings bank, trust company, savings and loan association, credit union, thrift or insurance company needs an installment loan license from the state to be in the business of lending in Nevada, whatever the loans are for. A lender that only lends to businesses outside Nevada, for use outside Nevada, does not. (Nevada Revised Statutes 99.050: agreed interest rates; Nevada Revised Statutes 675.040 and 675.060: installment loans, exemptions and license required)
• Idaho: Idaho's interest statute sets 12% a year only where no written contract fixes a different rate, and sets no ceiling on a rate agreed in writing. Idaho's regulated lender license covers only consumer loans, not business loans. (Idaho Code 28-22-104: legal rate of interest; Idaho Code 28-46-301: authority to make regulated consumer loans; Idaho Code 28-41-301: definitions (regulated consumer loan))
• Nebraska: Nebraska's limit of 16% a year does not apply to loans to a corporation, partnership, LLC or trust (or to their guarantors), to loans of $100,000 or more from one lender, or to loans guaranteed by a federal or state program. A business or farm loan to anyone else can also carry any rate when it comes from a bank or credit union insured by the FDIC or NCUA, an insurance company, or a lender holding another license from the state's Department of Banking and Finance; otherwise it is held to 16%. Nebraska's installment loan license covers only consumer loans, not business loans. A loan broker, anyone paid by you to find, arrange or apply for a loan, may not take any fee before the loan closes, including fees for processing, appraisals or credit checks. The broker must give you a disclosure statement before you sign, file it and its contract with the Department of Banking and Finance before advertising, and put the agreement in writing; you can cancel it for any reason within five business days and get back what you paid. If the broker misleads you, breaks the agreement or does not try hard to get you a loan, you can void it and recover what you paid, damages and attorney's fees. Taking an advance fee over $300 is a felony. Banks, credit unions, licensed installment lenders and mortgage bankers, credit card companies and insurers are left out. (Nebraska Revised Statutes 45-101.03: general interest rate; maximum; Nebraska Revised Statutes 45-101.04: general interest rate; when not applicable; Nebraska Revised Statutes 45-335 and 45-336: Nebraska Installment Loan and Sales Act, definitions and license required; Nebraska Revised Statutes 45-190: Loan brokers, terms defined; Nebraska Revised Statutes 45-191: Loan brokers, prohibited acts; Nebraska Revised Statutes 45-191.02 to 45-191.04: filings, penalties and the right to cancel; Nebraska Revised Statutes 45-191.07: violation of a loan brokerage agreement)
• Massachusetts: Massachusetts lets the parties agree any rate in writing. But interest and fees above 20% a year are criminal usury, unless the lender has first notified the state Attorney General and keeps records of the loans. Banks and other lenders supervised by a state or federal regulator are outside that rule. A lender, or a broker paid to arrange the loan, needs a small loan license from the Commissioner of Banks to be in the business of lending $6,000 or less at more than 12% a year in interest and fees, whatever the loan is for. (Massachusetts General Laws chapter 107, section 3: rate of interest; Massachusetts General Laws chapter 271, section 49: criminal usury; Massachusetts General Laws chapter 140, section 96: small loan business)
• Rhode Island: Interest may not go above 21% a year or 9 percentage points over the prime rate in The Wall Street Journal, whichever is higher. There is no limit on a loan of more than $1 million to a business entity, if it is not secured on a borrower's main home and a Rhode Island certified public accountant has first confirmed in a pro forma analysis that it can be repaid. Rhode Island's lender and loan broker licenses do not cover loans to corporations, partnerships, LLCs or other business entities, loans of more than $25,000 to individuals for business, or loans mainly secured by receivables or business inventory. (Rhode Island General Laws 6-26-2: maximum rate of interest; Rhode Island General Laws 19-14-2: licenses required; Rhode Island General Laws 19-14.1-10: special exemptions)
• New Hampshire: On business transactions New Hampshire's statute sets 10% a year only where no other rate is agreed in writing, and sets no ceiling on a rate agreed in writing. New Hampshire's small loan license covers only loans of $10,000 or less for personal, family or household use, not business loans. (New Hampshire Revised Statutes 336:1: rate of interest; New Hampshire Revised Statutes 399-A:1 and 399-A:2: small loans, definitions and license required)
• Hawaii: On a business loan the parties can agree any rate in writing, unless another law forbids it. A business loan of $250,000 or less secured on a person's main home is held to 12% a year, or 24% if the lender is a bank or other financial institution regulated under chapter 412 of Hawaii's statutes (other than a trust company or credit union). Hawaii's installment lender license covers only consumer loans. (Hawaii Revised Statutes 478-4: rate by written contract; Hawaii Revised Statutes 478-1: definitions (home business loan); Hawaii Revised Statutes 480J-1: installment loans, definitions)
• Illinois: Illinois's general limit is 9% a year, but any rate is lawful on a loan to a corporation, or on a business loan to a partnership, sole proprietor or other business owner, unless it is secured by the borrower's wages or household goods. State banks, savings banks and savings associations can agree any rate. The 36% cap in the Predatory Loan Prevention Act does not cover commercial loans. A lender in the business of making loans above 9% a year needs a consumer installment loan license from the state, except as that Act allows. The license section names no loan purpose, though the Interest Act separately allows any rate on the business loans above. A loan broker, anyone paid to find or help you get a loan, or to consider whether to lend to you, must register with the Secretary of State and give you a disclosure document, and the contract must be in writing. A broker paid only once a lender has committed to the loan and you have accepted (apart from third-party fees such as credit reports and appraisals) does not have to register, and nor does the lender itself, banks and other regulated lenders, insurers, attorneys, accountants or securities firms. If a broker breaks the law, the contract is void and you can recover what you paid, with interest and attorney's fees; the Secretary of State can fine it up to $10,000 for each violation, and a willful violation is a felony. (Illinois Compiled Statutes 815 ILCS 205/4: Interest Act, general interest rate; Illinois Compiled Statutes 815 ILCS 123/15-1-10 and 15-5-5: Predatory Loan Prevention Act, definitions and rate cap; Illinois Compiled Statutes 205 ILCS 670/1: Consumer Installment Loan Act, license required; Illinois Compiled Statutes 815 ILCS 175/15-5.15: Loan Brokers Act of 1995, loan broker defined; Illinois Compiled Statutes 815 ILCS 175/15-10: Loan Brokers Act of 1995, registration required; Illinois Compiled Statutes 815 ILCS 175/15-60: Loan Brokers Act of 1995, liability to damaged parties; Illinois Compiled Statutes 815 ILCS 175/15-80: Loan Brokers Act of 1995, persons exempt)
• New Jersey: New Jersey's limit on a written loan is 16% a year, but any rate can be agreed on a loan of $50,000 or more (unless it is secured by a first lien on a building of up to six homes), and a business or farm loan of $1,000 or more may carry up to 5 percentage points over the Federal Reserve Bank of New York's discount rate if that is higher. A corporation, LLC or limited liability partnership cannot plead usury. Above 30% a year is criminal usury, or above 50% on a loan to a corporation, LLC or limited liability partnership. New Jersey's consumer lender license covers only loans for personal, family or household use, not business loans. (New Jersey Statutes 31:1-1, 31:1-6, 2C:21-19, 17:11C-2 and 17:11C-3: contract rate, no usury defense for corporations, criminal usury, and the consumer lender license (search the Legislature's statutes database by section number))
• Oklahoma: On a loan that is not a consumer loan, the parties can agree any finance charge up to 45% a year. Oklahoma's supervised lender license covers only consumer loans, not business loans. (Oklahoma Statutes title 14A, sections 3-605, 5-107, 3-104, 3-501 and 3-502: Uniform Consumer Credit Code, finance charge for other loans and supervised lenders)
• Arkansas: Arkansas's constitution caps interest at 17% a year on loans and contracts. Loans by or to government bodies are left out, and so are loans by federally insured banks and savings associations with their main office in Arkansas, which can charge what federal law let such banks charge on March 1, 2009. A contract above the cap is void, both principal and interest. The cap does not override federal law on interest rates. A loan broker, anyone paid to arrange or help you get a loan, credit card or line of credit, may not take any fee before the loan closes, or mislead you. Arranging credit for a partnership or corporation only for business purposes is left out, so the rule protects sole proprietors more than companies; banks, credit unions, attorneys, mortgage brokers and other licensed firms acting under their licenses are left out too. A borrower can sue for three times what was paid or $1,000, whichever is more, plus costs and attorney's fees, and a knowing violation is a felony. (Arkansas General Assembly: HJR 1004 (2009), proposing an amendment to the Constitution of Arkansas concerning interest rate limits, sections 2, 3 and 6; Arkansas General Assembly: HJR 1004 (2009), status history (enrolled April 9, 2009; one of three amendments the 2009 session referred to voters); Arkansas Secretary of State: 2010 general election results by polling location (all three proposed constitutional amendments adopted); Arkansas Code Annotated, free public access (LexisNexis): sections 23-39-401 to 23-39-405, loan brokers)
• Colorado: Colorado allows any rate agreed in writing up to 45% a year, counting every charge the lender makes for the credit; without a written rate, interest is 8%. Charging more than 45% a year is criminal usury, a felony. Colorado's supervised lender license covers only consumer loans, not business loans. (Colorado General Assembly: 2026 Colorado Revised Statutes, titles for download (current with the 2026 session); Colorado Revised Statutes 2026, title 5: sections 5-12-101, 5-12-103, 5-1-301 (consumer loan, supervised loan) and 5-2-301; Colorado Revised Statutes 2026, title 18: section 18-15-104, criminal usury)
• Georgia: Georgia's legal rate is 7% when no rate is written down. On a loan of more than $3,000 and less than $250,000, the parties can agree in writing any rate, stated as simple interest; at $250,000 or more, any rate on any terms. At $3,000 or less the limit is 16% a year, unless the loan is made under another law. Whatever the size, charging more than 5% a month is a crime (a misdemeanor). A lender needs an installment lender license from the Department of Banking and Finance to make loans of $3,000 or less to an individual, whatever the loan is for and whatever the rate, so small loans to sole proprietors are covered and loans to companies are not. Banks, trust companies, savings associations, credit unions and pawnbrokers are left out. A loan broker that has no office regularly open to the public, paid to arrange or help you get a loan, credit card or line of credit, may not take any fee before the loan closes (you can still pay an independent third party directly for a credit check or an appraisal), or mislead you. Regulated lenders, people soliciting for them under a written contract, and approved mortgage bankers and brokers are left out. You can sue for at least what you paid the broker, plus attorney's fees, and breaking the law is a felony. (Official Code of Georgia Annotated, free public access (Georgia Code Revision Commission, through LexisNexis), current through the 2026 special session: sections 7-4-2, 7-4-18 and 7-7-1 to 7-7-6; Office of the Governor of Georgia: 2020 signed legislation, SB 462 (Georgia Installment Loan Act), Code Sections 7-3-3, 7-3-4 and 7-3-6 as amended; Georgia General Assembly: summary of general statutes enacted at the 2020 session (SB 462, effective June 30, 2020, for loans made on and after July 1, 2020))
• Mississippi: Mississippi's legal rate is 8% a year. On a loan of more than $2,000, the parties can agree in writing any finance charge, whatever the security or the purpose, and the borrower cannot later claim usury. On $2,000 or less, the limit is the greater of 10% a year or 5 percentage points above the Federal Reserve discount rate, unless another law allows more. Mississippi also requires a small loan license from the Department of Banking and Consumer Finance, and an office in the state, for anyone in the business of lending money; the law names no loan size or purpose. Banks, savings banks, trust companies, credit unions, insurers and pawnbrokers are left out, and so are farm loans, loans the federal government insures or guarantees (an SBA-guaranteed loan, for one), loans secured only by real estate, and occasional lenders. (Mississippi Legislature: SB 2172 (2001), as sent to the Governor, Section 75-17-1 of the Mississippi Code as amended; Mississippi Legislature: SB 2172 (2001), history of actions (approved by the Governor March 5, 2001); Mississippi Department of Banking and Consumer Finance: Consumer Finance Division (small loan licensing under the Small Loan Regulatory Law, 75-67-101 et seq.); Mississippi Code 1972 Annotated, free public access (LexisNexis): sections 75-17-1 (last amended by Laws 2001, ch. 317), 75-67-103, 75-67-105 and 75-67-135)
• Tennessee: Tennessee caps interest on a written loan at the applicable formula rate: 4 percentage points above the Federal Reserve's average prime rate, and never more than 24% a year. The Department of Financial Institutions announces it each week. Without a written contract the limit is 10%, and where another law sets a rate for a kind of lender, that rate applies. Collecting usury on purpose is a misdemeanor. A lender registered with the Department as an industrial loan and thrift company can charge up to 36% a year on loans of $100 or more, plus limited loan charges, and it needs that registration to lend at those rates, whatever the loan is for. Banks, savings associations, credit unions, insurers, pawnbrokers and other lenders supervised by a state or federal agency are left out of that registration. (Tennessee Department of Financial Institutions: rates of interest (the maximum effective formula rate, announced each week); Tennessee Code Unannotated, free public access (LexisNexis), current through the 2026 regular session: sections 47-14-102, 47-14-103, 47-14-112, 45-5-102, 45-5-103, 45-5-104 and 45-5-301)