US Lending Licences by State: Which Lenders Need One and How to Apply Through NMLS

A non-bank lender in the United States needs a licence from each state whose lending law covers its loans; there is no federal lending licence. California licenses any business of making or brokering consumer or commercial loans, New York licenses personal loans of US$25,000 or less and business loans of US$50,000 or less above 16% a year, Texas licenses consumer loans above 10% a year, and Florida licenses loans of US$25,000 or less above 18% a year. Most applications and renewals go through NMLS, and the 2026 renewal window runs from 1 November to 31 December.

This guide explains how state lending licences work, what triggers a licence in the four most populous states, where small business lending is caught, how to apply through NMLS, what regulators charge, and what has to be filed every year after approval. The full US consumer lending licence page sets out the requirements in one place.

How state lending licences work

Banks and credit unions lend under their charters. Every other lender needs permission from the states where its borrowers live, once its loans fall inside that state's lending law. Each state writes its own law and runs its own regulator: the Department of Financial Protection and Innovation (DFPI) in California, the Department of Financial Services (DFS) in New York, the Office of Consumer Credit Commissioner (OCCC) in Texas and the Office of Financial Regulation (OFR) in Florida.

State laws use three tests, often together:

• Purpose: whether the loan is for personal, family or household use, or for a business
• Size: whether the principal is under a cap, such as US$25,000
• Price: whether the interest rate is above a threshold, such as 10%, 16% or 18% a year

A lender that falls inside a state's test needs that state's licence before lending to its residents, whether it operates online or from a branch. A national online lender therefore holds a portfolio of state licences, each with its own capital, fees, rate limits, disclosures, reports and examinations. Lenders that prefer one national product often partner with a bank instead, which we cover in bank partnership or your own lending licences.

What triggers a licence in the four largest states

The table compares the trigger for a consumer lending licence in California, Texas, Florida and New York.

Three points stand out. California's licence is not tied to a rate, so a low-rate lender still needs it. It also covers commercial loans and brokers, although a California broker licence only authorises brokering to licensed finance lenders. In exchange, a California licence exempts the lender from the usury limit in the state constitution.

New York's licence is tied to the usury rate. A lender charging 16% or less is outside the licensed lender law, while a lender charging more needs the licence for loans up to the size caps.

Florida caps the rates its licensees may charge: 36% a year on the first US$10,000 of principal, 30% on the part from US$10,000 to US$20,000, and 24% on the part from US$20,000 to US$25,000.

Small business lending: where licences and registrations apply

Founders often assume business lending is unlicensed. In the largest markets that is no longer safe.

• California: the California Financing Law covers commercial loans and commercial loan brokers, so a non-bank small business lender serving California borrowers needs the licence.
• New York: business and commercial loans of US$50,000 or less above the usury rate need a licensed lender licence.
• Texas: House Bill 700 added Finance Code Chapter 398, in force from 1 September 2025. Providers and brokers of commercial sales-based financing, where repayment rises and falls with the business's sales, must register with the OCCC through NMLS by 31 December 2026. Registration costs US$1,000 and renews each year for US$1,000.
• Federal: the Equal Credit Opportunity Act applies to business credit. The CFPB's revised Section 1071 rule, published on 1 May 2026, requires lenders with at least 1,000 covered small business originations in each of two consecutive years to collect and report application data from 1 January 2028. Merchant cash advances, agricultural credit and loans of US$1,000 or less are excluded.

How to apply through NMLS

NMLS is the shared online system state regulators use to receive and renew non-bank licences. California, New York and Texas take lending licence applications through it. The sequence is the same in each state:

1. Request an NMLS company account. New York, for example, asks for a Company Account Request Form naming a primary and a secondary account administrator.
2. Complete the company form (MU1): legal entity, trade names, addresses, owners, officers, business activities and the licences sought.
3. Have each control person complete an individual form (MU2), with fingerprints, background checks and credit reports where the state requires them. Texas, for example, requires each direct owner of 10% or more to be listed as a qualifying individual.
4. Add a branch form (MU3) for each branch the state licenses. California requires a branch licence for each location doing business with California consumers.
5. Upload the documents on the state's NMLS checklist: business plan, organisation chart, financial statements, formation documents, sample loan agreements and disclosures, and compliance policies.
6. Post any surety bond and pay the regulator and NMLS fees, which are generally not refundable.
7. Answer deficiency notices until the licence is issued.

Texas shows what a checklist asks for: a business operating plan covering customer sources, loan purposes and sizes and working capital, a Texas formation document, a 342-model contract or sample loan documents, an organisation chart and a statement of experience. Audited financial statements may be up to one year old; unaudited statements must follow GAAP, be no more than 60 days old and come with a bank confirmation.

Not every state uses NMLS for every licence, so the first step for each state is to confirm its filing route.

Fees, net worth and bonds

The figures below are regulator requirements verified on each state's own sources at 20 October 2026. They exclude professional fees.

These are minimums. Regulators review capital against the business plan, and lenders funding their own loans need far more than the licence minimum to operate.

How long it takes

Most states do not publish a fixed decision period. Florida does: under Florida Statutes section 120.60, the OFR must flag errors or omissions within 30 days of receiving an application, and approve or deny within 90 days of a complete one. Elsewhere, timing depends on how complete the first filing is and how fast deficiency notices are answered.

A practical multi-state plan files the largest target states first from one clean NMLS record, then adds states in waves. Because each owner's and officer's record is built once in NMLS, later states move faster.

After the licence: renewals, reports and changes

A lending licence must be kept in good standing every year.

The NMLS renewal window for 2027 licences opens on 1 November 2026 and closes on 31 December 2026. States that allow reinstatement accept late renewals from 1 January to the end of February, usually with a late fee. California can revoke a licence for a missed annual report, and New York asked for 2025 reports by 17 March to allow review before its 1 April deadline.

Federal rules that apply in every state

A state licence is permission to lend. Federal consumer finance law decides much of how the lending is done:

• Truth in Lending Act and Regulation Z: standard cost disclosures, including the annual percentage rate (APR, the yearly cost of credit including most fees) and finance charge
• Equal Credit Opportunity Act and Regulation B: no discrimination on protected grounds, and written reasons when an application is declined
• Fair Credit Reporting Act: credit reports only for a permissible purpose, notices when a report affects a decision, and accurate reporting to credit bureaus
• UDAAP: the Dodd-Frank Act's ban on unfair, deceptive or abusive acts or practices, enforced by the CFPB
• Military Lending Act: a 36% cap on the military annual percentage rate for active-duty service members and their dependants

State regulators examine against these rules as well as their own, so the compliance programme filed with the licence application should cover both.

A launch plan for a multi-state lender

• Map every product against each target state's purpose, size and rate tests, including business products
• Decide the model for each state: own licence, bank partner, or both
• Build the NMLS company record and every control person's record once, consistently
• Prepare one business plan and one policy set, then tailor each state's checklist items
• Confirm capital, bonds and audited accounts before filing
• File the largest states first, then add states in waves
• Set one calendar for renewals, annual reports and change notices from the day the first licence issues
• Review BNPL and earned wage access features separately, because several states now regulate them directly; see BNPL and earned wage access licensing in the US

Regulatory Counsel prepares state lending applications through NMLS for consumer and small business lenders as part of our licensing and authorisation service, and our consumer credit practice covers lenders operating in both the UK and the US.