US Federal House Bill HB3244

US Federal 2025-2026 Regular Session

• Introduced: 5/7/25
• Refer: 5/7/25

Caption

CASH Act

Summary

HB3244, the Capital Access for Small Businesses Harmonization Act or “CASH Act,” would require providers of certain factoring facility agreements to give small business concerns a written disclosure before entering into the agreement when the expected aggregate value of the factoring transactions is under $500,000. The disclosure must spell out the discount between the face value of receivables and the amount paid to the business, any fees, reserve terms, the agreement’s duration, and a worked example using a $10,000 receivable to show the net payment and related charges. The bill is aimed at increasing transparency in factoring arrangements, which are transactions in which a business sells accounts receivable to a purchaser for immediate cash. It also defines key terms such as “factoring transaction,” “provider,” “reserve,” and “small business concern,” and it expressly excludes loans or advances repaid from future receivables that do not yet exist. The bill further states that a transaction characterized by the parties as a purchase and sale of receivables will be treated as a true sale for purposes of the Act.

Impact

If enacted, the bill would create a federal disclosure regime for certain small-business factoring agreements and would preempt state or local laws that impose additional or inconsistent disclosure requirements in this area. It would affect factoring providers engaged in interstate commerce and small businesses that use receivables financing, while leaving modifications to existing agreements outside the disclosure requirement. The measure would not regulate the substantive pricing of factoring, but it would standardize the information businesses receive before signing.

Sentiment

Based on the available record, the bill appears to have a generally pro-small-business, pro-transparency orientation, with no recorded votes or committee debate indicating opposition or support beyond its introduction and referral. The framing of the bill suggests an effort to help small businesses better understand the cost and structure of factoring transactions before committing to them. Because there are no transcripts or votes, the broader sentiment in legislative discussion cannot be measured directly from the provided materials.

Contention

The main policy issue embedded in the bill is federal preemption: it bars states and local governments from adding to or varying the required disclosures, which could draw concern from states that prefer to regulate commercial finance more aggressively. Another possible point of contention is the bill’s treatment of factoring as a “true sale” based on the parties’ characterization, which may matter for disputes over whether a transaction is actually a loan. The bill also draws a line at transactions under $500,000, so questions could arise about whether that threshold is appropriately targeted and whether the disclosure requirements are burdensome for providers.