Santa Clarita Weekly | June 24, 2026

Securing capital is one of the biggest hurdles to growing a small business in the Santa Clarita Valley. But what happens when alternative commercial financing comes with hidden traps that threaten the survival of your enterprise? This week on Santa Clarita Weekly, we listen to a conversation that Assemblywoman Pilar Schiavo (40th District) had with small business leaders to discuss AB 2116: The Protect Small Business from Predatory Lending Act. Traditional bank loans are strictly regulated, but alternative products like merchant cash advances often leave entrepreneurs vulnerable to deceptive agreements and aggressive collection tactics—including signing away legal rights before a default even occurs. Assemblywoman Schiavo walks us through the mechanics of the bill, why it’s gaining momentum in Sacramento, and how it aims to level the playing field by requiring lenders to register with the state and banning preemptive "confessions of judgment." Whether you currently run a local storefront or are in the market to acquire a business, this conversation is essential listening for navigating the modern commercial financial landscape. In this episode, we cover: The hidden dangers of unregulated commercial financing and merchant cash advances. How AB 2116 closes regulatory loopholes to protect small business owners. Why the bill bans aggressive collection tactics like "confessions of judgment." What a fairer financial marketplace means for the backbone of the SCV economy.