Nevada Installment Loan and Finance Act Amended by SB 437

Client Alert

The licensing regime in Nevada for consumer lenders and in particular for internet-based programs has been complicated and confusing. The situation is being clarified by recent legislation.

On May 28, 2025, Nevada Governor Joe Lombardo signed Senate Bill 437 (“SB 437”), which makes key changes for qualifying “Internet consumer lenders” under the Nevada Installment Loan and Finance Act.

Internet Consumer Lenders No Longer Need an In-State Office

The Nevada Installment Loan and Finance Act (Title 55, Chapter 675) (the “Act”) requires all entities engaging in “the business of lending in this State” to obtain the Installment Loan Company License. The business of lending definitionally includes the solicitation of loans in Nevada.¹ The Act’s anti-evasion provision further provides that the licensing requirement applies to any person, who seeks to evade the requirement by the “the real or pretended negotiation, arrangement or procurement of a loan through any use or activity of a third person […].”² Thus, the Act effectively imposes licensing requirement on all fintechs that market, solicit or broker consumer loans on behalf of bank sponsored programs on their online lending platforms. However, the current law imposes a requirement that licensees have a physical office in Nevada.

Historically, Nevada has been somewhat problematic for fintech and bank partnership lending programs as the Act previously required an in-state office for any entities seeking a license under the Act.³ In 2019, Nevada enacted legislation exempting “Internet business lenders”, covering only online lenders making commercial-purpose loans, from its in-state office requirement.⁴

Some consumer facing fintech companies have chosen to ignore the law, others have accommodated the in-state office requirement, and some have avoided the state entirely. SB 437 eliminates that requirement for “Internet consumer lenders” and will allow the state to obtain additional licensing revenue from consumer facing fintechs in bank partnerships, allowing those programs to operate without establishing an in-state office. Prior to the enactment of SB 437, only Internet business lenders (online lenders making commercial-purpose loans) were exempt from the in-state requirement.⁵

The amendment becomes effective on October 1, 2025, and the Act will then exempt licensed “Internet consumer lenders” from the in-state office requirement. Those lenders are defined as a person who makes, solicits, brokers, arranges or facilitates consumer loans exclusively through the Internet.⁶ Although the licensing requirement remains the same, fintechs that qualify as Internet consumer lenders may obtain the Installment Loan Company License without the burden of establishing and maintaining an in-state office.

Key takeaways from SB 437

• Contract Requirements: SB 437 establishes specific requirements for contracts between Internet consumerlenders and Nevada residents, aiming to ensure transparency and fairness in lending practices. Specifically, itrequires that the loan agreement uses Nevada as the governing law of the contract unless an exemption applies.However, SB 437 exempts loans made by federally and state-chartered banks through the carve-out for loanspreempting state law under federal preemption.⁷ Bank program loans should be exempt from this requirement.
• Out-of-State Licensing: It authorizes Internet consumer lenders to apply for a license to engage in lendingactivities from an office or place of business located outside Nevada, without the need for a physical presencewithin the state.
• Exemptions: The bill exempts Internet consumer lenders from certain provisions that prohibit conducting the business of making loans in the same office or place of business as any other business, facilitating more flexible operational arrangements

SB 437 takes effect on October 1, 2025.

1. Nev. Rev. Stat. Ann. § 675.060; Nev. Rev. Stat. Ann. § 675.020(4) (definition of “business of lending in this State”).

2. Nev. Rev. Stat. Ann. § 675.070(4).

3. Nev. Rev. Stat. Ann. § 675.090(3); Nev. Rev. Stat. Ann. § 675.020(11) (“‘Internet business lender’ means a person who makes business loans exclusively through the Internet”).

4. 2019 Nevada Laws Ch. 611 (S.B. 161); Acts 2020, 32nd Sp. Sess., ch. 1, § 5. Initially, the 2019 legislation exempted “Internet lenders” from the in-state office requirement, which was subsequently amended to “Internet business lenders,” thus exempting only Internet lenders making business-purpose loans.

5. Nev. Rev. Stat. Ann. § 675.090(3)(a); Nev. Rev. Stat. Ann. § 675.020(11).

6. 2025 Nevada Laws, Ch. 91, § 2(12) (S.B. 437).

7. 2025 Nevada Laws, Ch. 91, § 1 (S.B. 437) (emphasis added):

   To the extent not preempted by federal law, any contract between an Internet consumer lender and a resident of this State for the provision of a loan must: (a) Provide that the contract is governed by the laws of this State; and (b) Require that any litigation, arbitration or other process for the resolution of disputes arising out of the contract occur in this State.

   Any condition, stipulation or provision in a contract between an Internet consumer lender and a resident of this State for the provision of a loan that conflicts with the provisions of this section is contrary to public policy and is void and unenforceable.

Relevant Documents