Removes the licensing exemption for a lender that originates less than six (6) loans in twelve (12) consecutive months.

Rhode Island Bill Summary: Loan Lender Licensing Requirements

This bill would change who is required to get a license to make loans in Rhode Island. Under current law, a lender who makes fewer than six loans in any 12-month period is exempt from having to obtain a lending license. This bill would remove that exemption, meaning that any person or business making loans — even just one or two per year — would need to be licensed by the state.

The change would primarily affect small-scale or occasional lenders — such as private individuals, small businesses, or investment groups — who currently operate under the radar of state oversight because they don't lend frequently enough to trigger the licensing requirement. Under this bill, those lenders would need to go through the same application, background check, and regulatory process as larger, more active lending operations.

For everyday Rhode Islanders, this bill could offer stronger consumer protections, since licensed lenders are subject to state rules and oversight. Borrowers dealing with small or infrequent lenders would have more assurance that those lenders meet certain standards. The bill is currently in the early stages of the legislative process, having been introduced and referred to the Senate Commerce Committee, where it will be reviewed before any further action is taken.