California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 14 - Pilot Program for Increased Access to Responsible Small Dollar Loans
Subarticle 2 - Application and Registration
Section 1602 - Application for the Pilot Program for Increased Access to Responsible Small Dollar Loans: Form
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Except as provided in subsection (b), finance lenders licensed under the California Financing Law may apply to participate in the Pilot Program for Increased Access to Responsible Small Dollar Loans. The application for the Increased Access to Responsible Small Dollar Loans program pursuant to Section 22366 of the Financial Code shall be filed upon the form set forth in subsection (e).
(b) Licensees approved to participate in the former Pilot Program for Affordable Credit-Building Opportunities are transferred to and approved to participate in the Increased Access to Responsible Small Dollar Loans program, without filing the application in subsection (e).
(c) Within 30 calendar days from the receipt of the application, the Commissioner shall inform the licensee in writing, that the application is complete and the licensee is approved to participate in the program or disapproved, and if disapproved, the reason(s) for disapproval; or that the application is deficient and specify what information is required to complete the application. This subsection shall not apply to an applicant not licensed under the California Financing Law.
(d) Any person not licensed under the California Financing Law may apply concurrently for a license and to participate in the Increased Access to Responsible Small Dollar Loans program by completing a combined application form, which consists of the Application for a License Under the California Financing Law under Section 1422 of these rules and the Application for the Pilot Program for Increased Access to Responsible Small Dollar Loans Under the California Financing Law in subsection (e). The Commissioner shall concurrently review the combined application and within 45 calendar days, inform the applicant in writing that the application is complete and accepted for filing, or that the application is deficient and specify what information is required to complete the application. Within 60 calendar days from the filing of a complete combined application, the Commissioner shall reach a decision on the license and participation in the pilot program.
(e) An application to make loans under the Increased Access to Responsible Small Dollar Loans program shall be submitted to the Commissioner on the following form:
STATE OF CALIFORNIA
DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION
INFORMATION ON THE APPLICATION FOR THE PILOT PROGRAM FOR INCREASED ACCESS TO RESPONSIBLE SMALL DOLLAR LOANS UNDER THE CALIFORNIA FINANCING LAW
The following is provided as general information for finance lenders licensed, or seeking licensure under the California Financing Law (CFL), that wish to participate in the Pilot Program for Increased Access to Responsible Small Dollar Loans in accordance with Financial Code Section 22366.
GENERAL INFORMATION
Senate Bill 318 (Chap. 467, Stats. 2013) was signed into law on October 1, 2013, and became operative January 1, 2014. The bill created the Pilot Program for Increased Access to Responsible Small Dollar Loans to increase the availability of responsible small dollar installment loans of at least $300 but less than $2,500. Assembly Bill 2196 (Chap. 174, Stats. 2020) extended the Pilot Program to January 1, 2028, and Assembly Bill 237 (Chap. 1016, Stats 2018) increased the upper limit on the amount of a permissible loan under the Pilot Program from $2,500 to $7,500.
Finance lenders who are licensed under the CFL and approved by the Commissioner of Financial Protection and Innovation (Commissioner) to participate in the program may charge specified alternative interest rates and charges, including an administrative fee and delinquency fees, on loans of at least $300 but less than $7,500, subject to certain requirements. Licensees participating in the program are also permitted to use the services of a "finder" as defined in Section 22371 of the Financial Code.
LICENSEES UNDER THE FORMER PILOT PROGRAM FOR AFFORDABLE CREDIT-BUILDING OPPORTUNITIES
Effective January 1, 2014, Senate Bill 318 abolished the former Pilot Program for Affordable Credit-Building Opportunities (Senate Bill 1146 - Chap. 640, Stats. 2010). Licensees approved to participate under the former pilot program are transferred to and approved to participate in the Pilot Program for Increased Access to Responsible Small Dollar Loans without filing the application.
APPLICATION TO PARTICIPATE IN THE PROGRAM
* An application form to participate in the program may be obtained from the following offices of the Department of Financial Protection and Innovation and from the Web site at www.dfpi.ca.gov. The office locations are:
| 320 W. 4th Street, Suite 750 | Los Angeles, CA 90013 |
| One Sansome Street, Suite 600 | San Francisco, CA 94104 |
| 2101 Arena Blvd | Sacramento, CA 95834 |
| 1350 Front Street, Room 2034 | San Diego, CA 92101 |
* Questions regarding completing and filing an application should be directed to 213-576-7690.
* Completed applications must be filed with the Los Angeles Office. The application must be accompanied by NON-REFUNDABLE fees as follows.
| NUMBER OF LICENSED FINANCE LENDER LOCATIONS | APPLICATION FEE |
| 1 to 10 | $250 |
| 11 to 50 | $450 |
| 51 to 100 | $650 |
| Over 100 | $850 |
* Within 30 calendar days from the receipt of the application, the Commissioner shall inform the licensee in writing, that the application is complete and the licensee is approved to participate in the program or disapproved, and if disapproved, the reason(s) for disapproval; or that the application is deficient and specify what information is required to complete the application.
* Any person seeking to participate in the Pilot Program for Increased Access to Responsible Small Dollar Loans and not already licensed under the California Financing Law must complete a combined application, which consists of the Application for a License Under the California Financing Law under Section 1422 of these rules and the Application for the Pilot Program for Increased Access to Responsible Small Dollar Loans Under the California Financing Law. To be eligible to apply in this manner, there must be no outstanding enforcement or other disciplinary actions taken against the person by any of California's financial regulators or by a financial regulator of another state. The fees required for both applications shall be paid to the Department of Financial Protection and Innovation at the time the combined application is filed with the Commissioner. The Commissioner shall concurrently review the combined application and within 45 calendar days from receipt of the combined application, inform the applicant in writing that the application is complete and accepted for filing, or that the application is deficient and specify what information is required to complete the application. Within 60 calendar days from the filing of a complete application, the Commissioner shall reach a decision on the license and participation in the pilot program.
APPLICATION FOR THE PILOT PROGRAM FOR INCREASED ACCESS TO RESPONSIBLE SMALL DOLLAR LOANS UNDER THE CALIFORNIA FINANCING LAW
___________________________
Fictitious Business Name:
___________________________
___________________________
___________________________
___________________________
Email Address:
Yes [], please attach an explanation, marked as Exhibit 2, and documentation of the enforcement actions or deficiencies.
No []
Yes [], applicant is not eligible to apply concurrently for a license under the CFL and to participate in the pilot program. Applicant must first apply for a CFL license under Section 1422 of the rules.
No [], the Application for a License Under the California Financing Law is attached.
Yes [], Please attach a copy of these policies and procedures.
No []
Yes [], approved by the Commissioner on [] (month/day/year)
No [], attached is the credit education program or seminar, marked as Exhibit 3, for the Commissioner's review and approval.
No [], the credit education program or seminar will be submitted to the Commissioner for review and approval at a later time. Licensee shall not offer any credit education program or seminar that has not been previously reviewed and approved by the Commissioner for use, and licensee shall not disburse loan proceeds to a borrower prior to offering an approved credit education program or seminar to the borrower.
Yes [], the following information is provided:
| Name of Credit Reporting Agency | Date Accepted |
| _______________________________ | _______________________ |
| _______________________________ | _______________________ |
| _______________________________ | _______________________ |
No [], licensee or applicant has not at this time been accepted as a data furnisher. Information is attached, marked as Exhibit 4, for the Commissioner's review and approval, that 1) licensee will be accepted as a data furnisher, once it achieves a lending volume required of data furnishers of its type by a consumer reporting agency, and 2) lending volume will be achieved within the first six months of the licensee commencing lending.
Yes [], licensee or applicant agrees to report all borrower payment performance from inception of lending under the program as soon as practicable after acceptance into the program, but no later than six months after acceptance into the program, and agrees to notify each borrower, as soon as practicable following acceptance as a data furnisher, the name of the consumer reporting agency or agencies to which the borrower's payment history will be reported.
No []
Yes [], please attach a list of the name of the finder(s), marked as Exhibit 5, and a completed Notification to Commissioner of Financial Protection and Innovation of Finder Registration for each finder, marked as Exhibit 6.
No []
Yes [], the request to the Commissioner for approval to appoint the branch manager(s) with responsibility for the identified multiple branch locations and the information required under Financial Code Section 22378 concerning the centralized nature of underwriting and other key business activities performed by the licensee, is attached for the Commissioner's review, marked as Exhibit 8.
No []
The licensee has duly caused this application to be signed on its behalf by the undersigned, thereunto duly authorized.
The undersigned, on behalf of the licensee, acknowledges that this application and all exhibits thereto are subject to public inspection pursuant to Section 250.9.1, Chapter 3, Title 10, California Code of Regulations. A request for confidentiality of certain documents may be requested pursuant to Section 250.10. If a request for confidential treatment is granted (or denied), the person making such request will be notified in writing.
I declare under penalty of perjury that I have read the foregoing application, including Exhibits attached thereto, or filed therewith, and know the contents thereof, and that the statements therein are true and correct. I further declare, on behalf of the licensee, that I have read and understand the Financial Code and regulations pertaining to the California Financing Law and the Pilot Program for Increased Access to Responsible Small Dollar Loans under the California Financing Law.
| ___________________________ | |
| (Licensee) | |
| Executed at ___________________________ | ___________________________ |
| (City, County, and State) | (Signature of Declarant) |
| Date___________________________ | ___________________________ |
| (Typed Name of Declarant) | |
| ___________________________ | |
| (Title) |
CFL 1602 (8/21)
1. New
subarticle 2 (sections
1602-1603) and section filed
7-17-2014; operative 7-17-2014 pursuant to Government Code section
11343.4(b)(3)
(Register 2014, No. 29).
2. Amendment filed 5-10-2022; operative
7-1-2022 (Register 2022, No. 19).
Note: Authority cited: Section 22150, Financial Code. Reference: Sections 22366, 22370, 22375 and 22378, Financial Code.
