{"title":"US state commercial financing disclosure laws that reach merchant cash advances","version":"2026-09","checked":"2026-09-25","license":"https://creativecommons.org/licenses/by/4.0/","note":"Research summary from primary sources, not legal advice. Provider obligations only.","states":[{"state":"New York","code":"NY","status":"in_force","law":"Commercial Finance Disclosure Law (CFDL) + 23 NYCRR Part 600","citations":["N.Y. Fin. Serv. Law §§ 801-812","23 NYCRR Part 600"],"effective":"2022-01-01","complianceDate":"2023-08-01","mcaTerm":"sales-based financing (FSL § 801(j))","scope":"Exempt: individual transaction over $2,500,000 (§ 802(g)); ≤5 transactions/12 months (§ 802(f))","estimatedApr":true,"providerRegistration":false,"otherProtections":["CPLR 3218 (Ch. 214 of 2019, eff. 2019-08-30): confession of judgment may be filed only in county where defendant resided at execution or filing"],"unverified":["Enacting bill and effective date of GBL § 349 'abusive' amendment (reported FAIR Business Practices Act, eff. 2026-02-17)"],"sources":["https://www.nysenate.gov/legislation/laws/FIS/A8","https://www.nysenate.gov/legislation/laws/FIS/801","https://www.nysenate.gov/legislation/laws/FIS/802","https://www.nysenate.gov/legislation/laws/FIS/803","https://www.nysenate.gov/legislation/laws/FIS/812","https://www.nysenate.gov/legislation/bills/2019/S5470","https://www.nysenate.gov/legislation/bills/2021/A979","https://www.dfs.ny.gov/system/files/documents/2023/01/rf_finservices_23nycrr600_text.pdf","https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202302011","https://www.nysenate.gov/legislation/laws/CVP/3218","https://www.nysenate.gov/legislation/bills/2019/S6395","https://www.nysenate.gov/legislation/laws/GBS/349"],"checked":"2026-09-25"},{"state":"California","code":"CA","status":"in_force","law":"Commercial Financing Disclosures (SB 1235), amended by SB 33 (2023) and SB 362 (2025); SB 666 fee restrictions; CCFPL commercial financing rules","citations":["Cal. Fin. Code §§ 22800-22807","10 CCR §§ 900-956","Cal. Civ. Code §§ 1799.300-1799.304","10 CCR §§ 1060-1062"],"effective":"2022-12-09","complianceDate":null,"mcaTerm":"sales-based financing (10 CCR 900); statute covers accounts receivable purchase transactions","scope":"'Recipient' = offer ≤ $500,000 (§ 22800(n))","estimatedApr":true,"providerRegistration":false,"otherProtections":[],"unverified":["Whether § 22806(b) APR restatement reaches brokers","Whether brokers are 'covered providers' for 10 CCR 1062 report","SB 666 effective date on primary page","10 CCR text read via LII mirror (DFPI PDF blocked)"],"sources":["https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=FIN&division=9.5.&title=&part=&chapter=&article=","https://www.law.cornell.edu/regulations/california/10-CCR-940","https://www.law.cornell.edu/regulations/california/10-CCR-930","https://www.law.cornell.edu/regulations/california/10-CCR-931","https://www.law.cornell.edu/regulations/california/10-CCR-942","https://www.law.cornell.edu/regulations/california/10-CCR-952","https://www.law.cornell.edu/regulations/california/10-CCR-955","https://www.law.cornell.edu/regulations/california/10-CCR-1062","https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB666"],"checked":"2026-09-25"},{"state":"Utah","code":"UT","status":"in_force","law":"Commercial Financing Registration and Disclosure Act","citations":["Utah Code §§ 7-27-101 to 7-27-301"],"effective":"2023-01-01","complianceDate":null,"mcaTerm":"accounts receivable purchase transaction","scope":"Exempt: transaction of more than $1,000,000 (§ 7-27-102(11)); provider with ≤5 transactions/12 months","estimatedApr":false,"providerRegistration":true,"otherProtections":[],"unverified":["2022 bill number","Whether later amendments added broker duties"],"sources":["https://le.utah.gov/xcode/Title7/Chapter27/C7-27_2022050420220504.pdf"],"checked":"2026-09-25"},{"state":"Virginia","code":"VA","status":"in_force","law":"Sales-Based Financing Providers (HB 1027, Ch. 516 of 2022)","citations":["Va. Code §§ 6.2-2228 to 6.2-2238","10VAC5-240"],"effective":"2022-07-01","complianceDate":null,"mcaTerm":"sales-based financing (incl. true-up)","scope":"Exempt: single transaction over $500,000; ≤5 transactions with a recipient in 12 months (§ 6.2-2229)","estimatedApr":false,"providerRegistration":true,"otherProtections":["Confession-of-judgment provisions prohibited (§ 6.2-2234(C))","Actions must be brought in Virginia; no out-of-jurisdiction face-to-face arbitration; provider pays arbitration costs (§ 6.2-2234(A)-(B))","Noncompliant provisions unenforceable (§ 6.2-2236)"],"unverified":[],"sources":["https://law.lis.virginia.gov/vacode/title6.2/chapter22.1/","https://law.lis.virginia.gov/admincodefull/title10/agency5/chapter240/","https://legacylis.virginia.gov/cgi-bin/legp604.exe?221+sum+HB1027"],"checked":"2026-09-25"},{"state":"Georgia","code":"GA","status":"in_force","law":"Commercial financing disclosures (SB 90, 2023), Fair Business Practices Act","citations":["O.C.G.A. § 10-1-393.18"],"effective":"2024-01-01","complianceDate":null,"mcaTerm":"accounts receivable purchase transaction","scope":"Exempt: transaction of more than $500,000; provider with ≤5 transactions/12 months","estimatedApr":false,"providerRegistration":false,"otherProtections":["A/R purchase characterized as purchase is conclusive it is not a loan under Title 7"],"unverified":["Governor signature date (reported 2023-05-01)"],"sources":["https://www.legis.ga.gov/api/legislation/document/20232024/219440"],"checked":"2026-09-25"},{"state":"Florida","code":"FL","status":"in_force","law":"Florida Commercial Financing Disclosure Law","citations":["Fla. Stat. §§ 559.961-559.9615"],"effective":"2024-01-01","complianceDate":null,"mcaTerm":"accounts receivable purchase transaction","scope":"Exempt: transaction of more than $500,000; ≤5 transactions/12 months","estimatedApr":false,"providerRegistration":false,"otherProtections":[],"unverified":["Bill number (reported HB 1353)"],"sources":["http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0500-0599/0559/0559PartXIIIContentsIndex.html"],"checked":"2026-09-25"},{"state":"Connecticut","code":"CT","status":"in_force","law":"Commercial financing (sales-based) disclosure and registration (P.A. 23-201)","citations":["Conn. Gen. Stat. §§ 36a-861 to 36a-872"],"effective":"2024-07-01","complianceDate":null,"mcaTerm":"sales-based financing (incl. true-up)","scope":"'Commercial financing' = sales-based financing not exceeding $250,000 (§ 36a-861(1))","estimatedApr":false,"providerRegistration":true,"otherProtections":["No waiver of notice/hearing for prejudgment remedies (§ 36a-868)","Specific offer irrevocable until midnight of 3rd calendar day (§ 36a-869)"],"unverified":["NMLS registration mechanics (DOB page not opened)"],"sources":["https://www.cga.ct.gov/current/pub/chap_669.htm"],"checked":"2026-09-25"},{"state":"Kansas","code":"KS","status":"in_force","law":"Commercial Financing Disclosure Act (SB 345, 2024 Sess. Laws ch. 29)","citations":["2024 Kan. Sess. Laws ch. 29"],"effective":null,"complianceDate":null,"mcaTerm":"accounts receivable purchase transaction (includes cash receipts)","scope":"Exempt: transaction of more than $500,000; ≤5 transactions/12 months","estimatedApr":false,"providerRegistration":false,"otherProtections":[],"unverified":["Exact effective date","K.S.A. codification"],"sources":["https://sos.ks.gov/publications/sessionlaws/2024/Chapter-29-SB-345.html"],"checked":"2026-09-25"},{"state":"Missouri","code":"MO","status":"in_force","law":"Commercial Financing Disclosure Law","citations":["RSMo § 427.300"],"effective":"2025-02-28","complianceDate":null,"mcaTerm":"accounts receivable purchase transaction","scope":"Exempt: transaction of more than $500,000; ≤5 transactions/12 months","estimatedApr":false,"providerRegistration":false,"otherProtections":[],"unverified":["Whether Division of Finance declared rulemaking intent","Content of 2025 amendment"],"sources":["https://revisor.mo.gov/main/OneSection.aspx?section=427.300","http://finance.mo.gov/sites/finance/files/2025-07/commercial%20financing%20registration%20form.pdf"],"checked":"2026-09-25"},{"state":"Texas","code":"TX","status":"in_force","law":"Commercial Sales-Based Financing (HB 700, 89th Leg.) + 7 TAC Ch. 86 Subch. C","citations":["Tex. Fin. Code ch. 398","7 TAC §§ 86.301-86.322"],"effective":"2025-09-01","complianceDate":"2026-12-31","mcaTerm":"commercial sales-based financing (incl. true-up)","scope":"Disclosures for specific offers of less than $1 million (§ 398.051(a))","estimatedApr":false,"providerRegistration":true,"otherProtections":["Confession of judgment provision void (§ 398.055)","No automatic debit mechanism unless perfected first-priority security interest (§ 398.056; 7 TAC 86.313: in all accounts receivable; >1 prewritten check counts)"],"unverified":["Governor signature date (reported 2025-06-20)","Renewal deadline: statute Jan 31 vs OCCC Nov 1-Dec 31 window"],"sources":["https://capitol.texas.gov/tlodocs/89R/billtext/html/HB00700F.htm","https://occc.texas.gov/industry/regulated-lenders/commercial-sales-based-finance/","https://www.sos.state.tx.us/texreg/archive/July32026/Adopted%20Rules/7.BANKING%20AND%20SECURITIES.html"],"checked":"2026-09-25"},{"state":"Louisiana","code":"LA","status":"in_force","law":"Revenue-based financing transactions (HB 470, Act 198 of 2025)","citations":["La. R.S. 9:3137.10"],"effective":"2025-08-01","complianceDate":null,"mcaTerm":"revenue-based financing transaction","scope":"No threshold or exemptions in enacted text","estimatedApr":false,"providerRegistration":false,"otherProtections":["Revenue-based financing is not a transaction for the use, forbearance, or detention of money; amounts charged are not interest (§ 3137.10(A)(2), (B))"],"unverified":["Exact signature date (June 2025)"],"sources":["https://legis.la.gov/legis/BillInfo.aspx?s=25RS&b=HB470&sbi=y","https://legis.la.gov/legis/ViewDocument.aspx?d=1425126"],"checked":"2026-09-25"},{"state":"Vermont","code":"VT","status":"enacted_not_yet_effective","law":"Commercial Financing (Act 142 of 2026, H.648, § 60)","citations":["8 V.S.A. § 2247"],"effective":"2027-07-01","complianceDate":null,"mcaTerm":"sales-based financing (incl. sale/assignment of future receivables) and factoring","scope":"Section does not apply to transactions of $1,000,000 or more (§ 2247(b)(4))","estimatedApr":true,"providerRegistration":true,"otherProtections":["Confession of judgment void (§ 2247(e))","Automatic debit restriction (§ 2247(d))","Vermont law/venue required (§ 2247(f))"],"unverified":[],"sources":["https://legislature.vermont.gov/bill/status/2026/H.648","https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT142/ACT142%20As%20Enacted.pdf"],"checked":"2026-09-25"},{"state":"Maryland","code":"MD","status":"none_enacted","law":null,"citations":[],"effective":null,"complianceDate":null,"mcaTerm":null,"scope":null,"estimatedApr":null,"providerRegistration":null,"otherProtections":[],"unverified":[],"sources":["https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0754?ys=2025RS","https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/hb1007?ys=2026RS","https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0881?ys=2026RS"],"checked":"2026-09-25"},{"state":"Illinois","code":"IL","status":"none_enacted","law":null,"citations":[],"effective":null,"complianceDate":null,"mcaTerm":null,"scope":null,"estimatedApr":null,"providerRegistration":null,"otherProtections":[],"unverified":[],"sources":["https://www.ilga.gov/Legislation/BillStatus?DocNum=260&GAID=18&DocTypeID=SB&SessionID=114&Print=1","https://www.ilga.gov/Legislation/BillStatus?DocNum=2595&GAID=18&DocTypeID=HB&SessionID=114&Print=1"],"checked":"2026-09-25"},{"state":"New Jersey","code":"NJ","status":"pending","law":null,"citations":["S1760 (2026-2027 session)"],"effective":null,"complianceDate":null,"mcaTerm":null,"scope":null,"estimatedApr":null,"providerRegistration":null,"otherProtections":[],"unverified":["Current status"],"sources":["https://pub.njleg.gov/Bills/2026/S2000/1760_I1.HTM"],"checked":"2026-09-25"}]}