; or (ii) the small business chooses not to accept financing through the broker’s services. (B) Replacement of existing financing If a broker or third-party lender offers an existing small business customer new financing, neither the broker nor the third-party lender may charge the small business a new financing charge for the financing being replaced. (c) Broker licensing and enforcement (1) State broker licensing A person may only perform the function of a broker in a State if the person is licensed as a broker— (A) with respect to a State that has a covered broker licensing law, by the State; or (B) with respect to a State that does not have a covered broker licensing law, by the Bureau. (2) Covered broker licensing law With respect to a State, the term covered broker licensing law means a State law that the Director determines meets the following requirements: (A) Licensing The law provides for a process to license brokers operating in the State. (B) Prohibition on unlicensed brokers The law prohibits any person from acting as a broker in the State unless such person is licensed by the State as a broker. (C) Prohibition on licensing certain individuals The law prohibits licensing an individual as a broker if such individual— (i) has had a State license revoked for cause in any State; (ii) has had a Federal license revoked for cause; or (iii) has been convicted of any crime involving lying, deceit, or misappropriation of the truth. (D) Limitation on broker employees The law prohibits a broker from employing any individual, other than a clerical employee, who is described under clause (i), (ii), or (iii) of subparagraph (C). (E) Examination The law requires a licensed broker to undergo State audits and provides for examination of the broker by State regulators. (F) Enforcement With respect to any violation of a State law or regulation in connection with performing the duties of a broker, the law provides for— (i) an initial warning being given to the broker