By the Division of Banks

Bank Denials Of Equipment Lease Applications Made By Small Businesses

Any applicant receiving a small business loan denial is eligible to have the loan application reviewed by the Small Loan Review Board pursuant to 209 CMR 39.10. It is the position of the Division of Banks that the denial of equipment lease financing to a small business does not constitute a small business loan denial. Therefore, banks engaged in business equipment lease financing would not be subject to the same requirements triggered by the denial of small business loan applications under Mass. Gen. Laws chapter 167, § 14C and 209 CMR 39.00. Accordingly, no appeals on denials for such equipment lease financing will be heard by the Small Business Loan Review Board.