Bill · H.R. 3244· House(119-HR-3244)
CASH Act
- Introduced
- 5/7/2025
- Last activity
- 5/7/2025 — Referred to the House Committee on Small Business.
- Sponsored by
- Frank Lucas
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The CASH Act requires certain providers to give clear, written disclosures to small business concerns before they enter into factoring facility agreements. These disclosures must apply if the total amount of transactions is expected to be less than $500,000. The disclosures must include details like fees, reserves, and the duration of the agreement. To ensure clarity, the bill requires a specific example of a $10,000 transaction. Finally, the act prevents states from adding their own disclosure requirements that are different from or additional to this law.
Yes· 3 of 4
Would business owners be better off under this?+7
The bill benefits business owners by mandating clear disclosures regarding the costs and terms of factoring agreements.
Does this make it easier to run a small business?+6
The act enhances transparency for small businesses by requiring clear disclosures of fees and terms in factoring agreements.
Does this give the federal government more power?+4
The bill increases federal power by preempting state-level disclosure requirements.
The opposite
Does this leave more decisions to the states?-5
The bill reduces state rights by preempting any additional or inconsistent state-level disclosure laws.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Transparency for Small Businesses: Providers must provide a written disclosure of terms before an agreement is made, which helps small businesses understand what they are signing up for (Section 2(a)).
-
Clear Understanding of Costs: The bill requires providers to list any potential fees and the specific difference between the face value of a claim and the amount actually paid to the business (Section 2(b)(1) and 2(b)(2)).
-
Predictability of Funds: By requiring disclosure of the amount and terms of any reserve, businesses will know how much money might be withheld until a claim is paid (Section 2(b)(3)).
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Practical Financial Modeling: The requirement for a $10,000 transaction example allows small businesses to see exactly how much they will net after fees and reserves are applied (Section 2(b)(5)).
Potential Negative Impacts for People
- No State-Level Protections: The bill includes a federal preemption clause that prevents states or political subdivisions from creating their own additional or inconsistent disclosure requirements for these agreements (Section 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+6Improves Consumer Protection+3
- Demographic And Interest Groups
- Good For Business Owners+7
- Governance And Ideology
- Increases Federal Power+4Increase States Rights-5
- 5/7/2025
- Referred to the House Committee on Small Business.
- Introduced in House