# Lending licensing, in plain English What a lending license actually authorizes, the per-state cadence, and the common entry points for a new lender. ## What you will learn - The activities that typically trigger a state lending license - Why "consumer" versus "commercial" lending separates the paperwork - What the typical first application looks like ## Lending is licensed per state, per activity A state lending license generally authorizes a specific activity in a specific state , consumer lending, supervised lending, commercial lending, motor-vehicle sales finance, payday lending , each is its own license type in most states. Operating across five states with two activity types usually means around ten separate license decisions. ## Consumer versus commercial The biggest single split in lending licensing is consumer versus commercial. Consumer lending pulls in much heavier disclosure and rate-cap rules at the state level. Commercial lending is lighter in most states, but a handful regulate it explicitly. Operators that lend to both audiences typically hold two license families per state. ## What the first application looks like A typical first lending application packages the legal entity documents, a [[term:certificate-of-authority]] for the state, a [[term:surety-bond]] sized to the state's rule, financial statements, background checks on the [[term:control-person]] list, and a description of the lending product. Filing happens through the state regulator's portal, often the [[term:nmls]] for consumer lending. ## FAQs ### Is one lending license per state ever enough? Sometimes for a single product. Most growing lenders end up with several license types per state as they add products.