The problem with APR's is that either a short term or low dollar amount have a huge effect on the APR. With small dollar loans you usually have both. The processing fee is a cost to get the loan, therefore a finance charge. Since it is charged at the beginning of the loan, it is a prepaid finance charge.
Like the "R's" have mentioned, either you or your attorney should check state law for nuances.
Integrity. With it, nothing else matters. Without it, nothing else matters.