On March 6, 2026, the Oregon state Senate passed HB 4116, a bill aimed at restricting out-of-state lenders from charging interest rates above Oregon’s 36 percent cap when lending to Oregon borrowers. The bill, which previously cleared the Oregon House of Representatives, now heads to Governor Tina Kotek, who has indicated she plans to sign it into law. This Alert examines the background of state interest rate caps and the “loophole” that has allowed lenders to circumvent them, details Oregon’s recent legislative response to that loophole, and outlines the potential implications for the consumer lending market if other states implement similar legislation.