Registration and Licensing
Any person who, in return for a fee from any person who is domiciled in the State of Illinois, promises to procure a loan for any person or assist any person in procuring a loan from any third party, or who promises to consider whether or not to make a loan to any person, must be registered as a loan broker with the Illinois Secretary of State Securities Department, unless exempt under law.
An application for registration must be filed with the Secretary of State on Illinois Form IL LB15-10, Application to Register as a Loan Broker in the State of Illinois, along with Illinois Form LB15, Consent to Service of Process (if not incorporated or authorized to transact business in Illinois), the disclosure document required under Section 15-30(b) of the law, a bond required under Section 15-15(b), and the required filing fee. The loan broker will be registered when the application is complete and accurate provided there are no statutory disqualifications.
Changes that render information on the application or documents on file with the Secretary of State inaccurate must be reported to the Secretary of State within 10 business days after the change occurred. Registrants must file for renewal of registration annually.
Fees for Loan Brokers
- Initial Application Filing Fee — $300
- Initial Examination Fee — $50
- Registration Fee — $10
- Annual Renewal Fee — $300
- Annual Examination Fee — $50
Late fees are assessed if the required forms or fees are not filed or paid in a timely manner.
To search for a registered loan broker, please visit the Securities Search section.
Audit and Compliance
The most frequent problem encountered in registering as a loan broker is the acquisition of the required bond. The bond must be made payable to the State of Illinois for $25,000. The bond may be acquired through any insurance company authorized to do business in the State of Illinois. Another common concern is the disclosure statement required by Section 15-30 of the Act. A disclosure statement must be provided to each borrower that does not qualify for the exemption under Section 15-30.5 of the Act. Examples of the disclosure can be found in Section 145.303 of the Rules. Specific requirements for the disclosure can be found in Section 15-30 of the Loan Brokers Act of 1995 and the attendant rules.
The Secretary of State, Illinois Securities Department or their information providers shall not be liable regardless of the cause or duration, for any errors, inaccuracies, omissions or untimeliness of the information, or for any delay or interruption in the transmission thereof to the user, or for any claims or losses arising therefrom.