This bill amends Chapter 22 of Title 28 of the Idaho Code by adding a new section, 28-22-103, which establishes guidelines for interest rates that can be agreed upon by parties in a loan agreement. Under this new provision, parties may contractually agree to an interest rate that does not exceed either 30% or an amount that is 10 percentage points above the prime rate published by the Federal Reserve, as of three business days prior to the agreement's execution. The bill clarifies that a loan agreement that is not considered usurious at the time of its creation remains lawful throughout its duration, provided that the terms of the agreement are not substantially altered, although this does not apply to loan renewals.

Additionally, the bill specifies that the provisions outlined in this section do not apply to regulated lenders as defined in section 28-41-301 of the Idaho Code. An emergency is declared, and the act is set to take effect on July 1, 2026.