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I am an out of state consumer lender. Do I need a license?
This License is required of any company or sole proprietorship, whose main office or branch is located In-state OR Out-of-State and conducts consumer lending activities from that location.
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I am a lender to businesses and other commercial ventures. Do I need a license?
No. Credit transactions involving extensions of credit for business, commercial or agricultural purposes are excluded from the Louisiana Consumer Credit Law and licensure is not required.
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If I have several locations in Louisiana, do I need a license for each location?
Yes. A separate license fee is required for each location. However, an abbreviated application is available for corporations and limited liability companies opening additional locations under the same organization juridical entity.
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How much does a license cost?
The total Louisiana Licensed Lender application fee is $650, payable through the NMLS at time of submission of the company filing.
The Licensed Lender annual renewal fee is $500 per location and is due by December 31st of each year. Renewals received after December 31st will be assessed a $100 late fee per location. All renewals applications are due no later than February 28th.
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How long does the licensing process take?
If all information and documentation are submitted correctly at the initial receipt of the application, then normal licensure time is approximately 4-6 weeks.
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Do I need a bond or is there a minimum net worth requirement?
No. However, we have a $25,000 start-up cash requirement. We require a letter from your financial institution stating that the applicant has $25,000 unencumbered cash on deposit.
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Do I have to maintain the $25,000 cash balance at all times?
No. After licensure you may utilize the funds to make loan, pay expenses, etc.
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May an applicant operate while waiting for licensure?
No. Applicants may NOT begin the business activities of making consumer loans until a license is issued.