License & Permit
Finance Lender Bond
A finance lender bond is the license bond California requires from finance lenders and brokers licensed under the California Financing Law.
- Required by
- California Department of Financial Protection and Innovation
- Bond amount
- $25,000 minimum (California Financial Code 22112)
What this bond guarantees
The bond is payable to the California Commissioner of Financial Protection and Innovation. It promises the licensee will follow the law, and it can cover the regulator's costs, fines, and fees or consumer damages from the licensee's noncompliance.
Who needs it
- Consumer finance lenders licensed in California
- Commercial lenders licensed under the California Financing Law
- Loan brokers under the same license
What the underwriter looks at
- Owners' credit
- Company financial statements
- Regulatory history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Do I need a separate bond for each location?
No. A licensee with several California locations needs only one $25,000 bond.
What happens if my bond lapses?
Failing to keep the bond in force is grounds for license revocation, so renew or replace it before it expires.
My state calls it a consumer lender or small loan license. Is it the same?
It is a similar idea. Other states license consumer lenders under their own laws with their own bond rules.