Nevada requires nonexempt persons making unsecured or other non-real estate secured commercial or business loans, or non-real estate-secured consumer loans, to obtain a license under the state’s Installment Loan and Finance Act (the “Nevada Act”), administered by the state’s Division of Financial Institutions (the “Division”). Shortly after enactment of the federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which, among other provisions, authorized the Small Business Administration (“SBA”) to guarantee $349 billion in deferrable, forgivable loans to struggling small businesses under the Paycheck Protection Program (“PPP”), we sought relief from licensing under that Nevada Act for non-bank lenders making those SBA loans. (Banks are exempt from the licensing obligations of this Nevada Act.)
Thursday night, April 9th, we received an email reply to our request from the Division’s Deputy Commissioner informing us that the Division had approved a temporary waiver from the licensing obligation of the Nevada Act for lenders making SBA PPP loans. The lender must complete the Nevada PPP Exemption Request for the Division’s approval. Once approved, the waiver from licensing to make PPP loans will be effective until June 30, 2020 (the last day on which PPP loans may be made) or funds appropriated for the PPP are exhausted. If Congress extends the PPP, we will check with the Division to see if the relief from licensing also is extended. Should you need any help in completing the form, please let us know.
RESPA Compliance for Lead Generators: Recent CFPB Guidance Addresses Digital Comparison Shopping PlatformsGlobal Financial Markets Podcast