While certain federal laws such as the Equal Credit Opportunity Act and the Federal Housing Act are applicable to both residential and commercial loans, of significant importance is which federal laws are not applicable to commercial business purpose loans.
Specifically, business purpose loans are exempt from Regulation Z (which implements the Federal Truth in Lending Act "TILA"). In addition, business purpose loans are exempt from Regulation X (which implements the Real Estate Settlement Procedures Act "RESPA"). To ensure the loan is considered commercial (business purpose) we also include language that the loan will be used solely for business, commercial investment, or similar purposes, and that no portion of it will be used for agricultural, personal, family, or household purposes. Lastly, we include a Business Purpose of Loan Certification.
Of importance, you are exempt from Residential laws and fall under commercial lending laws as long as the proper language and disclosure are included in the loan documents, as outlined above.