Several online lenders and payday lenders loan money to people/businesses in New York. Some without being licensed there to do so. Thinking they can get around both being licensed to do so in New York and their usuary laws by originating the loans in other states.

It looks like New York has been more active in enforcing their usuary laws in the recent past. And from this article it looks like they may require any lender who loans money to residents/businesses in New York will be required to be licensed there and abide by their usuary laws no matter where the lenders are or the loans originate from.

KBM specifically states in their loans they must be governed by New York laws. This may actually be a good thing since New York seems to be enforcing their usuary laws more now.