House panel backs bill defining revenue‑based financing for small business
Chairman McFarland’s HB 470 creates statutory clarity for revenue‑based financing (a non‑recourse, revenue‑sharing funding model for small and medium businesses), defines the structure and encourages such funders to operate in Louisiana; committee reported the bill favorably.
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Representative Tanner McFarland described revenue‑based financing as an alternative to fixed monthly loans: a funder advances capital and receives a fixed percentage of future revenue until an agreed payoff amount is returned. McFarland told the committee his bill provides certainty and a uniform definition so lenders and borrowers can use revenue‑based financing without regulatory confusion.
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