State commercial financing disclosure laws: 2026 tracker

Reviewed by Imre Vadasz, founder and managing director · Last updated November 4, 2026 · Public statutes and regulator sources only · Not legal advice

Twelve states now have laws that tell providers of commercial financing, including merchant cash advances, what they must put in writing before a business owner signs. Eleven of these laws are already in force. Vermont's takes effect in July 2027. Most of them require the total cost in dollars. California, New York and, from 2027, Vermont also require an estimated annual percentage rate (APR). This tracker lists each law, its official source, when it took effect, which deals it covers, and whether providers or brokers must register.

The 2026 tracker at a glance

"Applies to" is the main dollar threshold. Every law also has exemptions, most commonly banks and credit unions, providers that make no more than five deals a year in the state, real-estate-secured loans, leases and vehicle dealer floor plans. Louisiana and Texas have no five-deal exemption. Links go to the statute, the legislature or the state regulator. Where an official site could not be read, the row was checked against two independent law-firm summaries; see the notes below each state.

Three kinds of law

• APR states (California, New York, Vermont from 2027). These require the cost as an annual rate, or an estimated APR for financing like a merchant cash advance that has no fixed term, along with the total repayment and payment schedule. California and New York also limit calling a figure a "rate" unless it is an APR.
• Total-cost states (Utah, Georgia, Florida, Kansas, Missouri, Louisiana). These use a shorter list with labels such as "total amount of funds provided", "total of payments" and "total dollar cost of financing", plus the payment amount and frequency and any prepayment terms. No APR is required.
• Sales-based financing states (Virginia, Connecticut, Texas). These cover sales-based financing, such as merchant cash advances repaid from revenue. They require a detailed itemised disclosure (finance charge, total repayment, estimated term, payment method, fees and collateral) and registration, but no APR.

State by state

California

California was first. SB 1235 (2018) added Division 9.5 to the Financial Code, and the DFPI's disclosure regulations took effect on December 9, 2022. It covers commercial financing offers of $500,000 or less. The provider must disclose the total amount of funds provided, the total dollar cost, the term or estimated term, the method, frequency and amount of payments, the prepayment policy, and the total cost as an annualized rate (an estimated APR for sales-based financing). The recipient signs the disclosure. SB 666 (2023) banned several fees for small businesses from January 1, 2024. SB 362 (2025) took effect on January 1, 2026: a pricing figure may not be called "interest" or a "rate" unless it is an APR, and once a specific offer has been made, any quoted charge or financing amount must also show the APR. AB 2116 (2026) adds DFPI licensing for commercial financing providers and brokers starting in 2028. Providers to small businesses also file an annual report with the DFPI under the state's consumer financial protection rules.

New York

New York's Commercial Finance Disclosure Law (Financial Services Law Article 8) and the DFS regulation at 23 NYCRR Part 600 apply from August 1, 2023, to transactions of up to $2.5 million with businesses managed principally from New York. For sales-based financing, the disclosure must show the total financing amount and disbursement amount, finance charge, estimated APR, total repayment amount, estimated term, payment amounts and frequency, other potential fees, prepayment terms and any collateral. When a broker is involved, the provider must state how the broker is paid, and the broker must pass the provider's disclosure on unaltered. New York does not require registration.

Utah

Utah's Commercial Financing Registration and Disclosure Act took effect on January 1, 2023 and covers transactions of $1 million or less. The disclosure shows the total funds provided and disbursed, the total amount to be paid, the total dollar cost, the payment amount and frequency (or an estimated payment and the method behind it), prepayment costs or discounts, and any amount paid to a broker. Providers register with the Department of Financial Institutions and renew every year.

Virginia

Virginia's law (Code §§6.2-2228 to 6.2-2238) applies only to sales-based financing, up to $500,000, for businesses based in Virginia. The itemised disclosure covers the total financing and disbursement amounts, the finance charge, the total repayment, the estimated number of payments, the payment method, other fees, prepayment and refinancing terms, collateral, and any compensation the provider pays a broker. Both providers and brokers had to register with the State Corporation Commission by November 1, 2022. The law also bans confession-of-judgment clauses.

Georgia

Georgia's SB 90 added §10-1-393.18 to the Fair Business Practices Act. It covers transactions of $500,000 or less consummated on or after January 1, 2024. The six required items are the funds provided, the net funds disbursed, the total amount payable, the total dollar cost, the payment manner, frequency and amount, and prepayment costs or discounts. Brokers may not charge advance fees or make false or misleading statements. The Attorney General enforces it, and there is no registration.

Florida

The Florida Commercial Financing Disclosure Law (Fla. Stat. §§559.961–559.9615) covers transactions of $500,000 or less consummated from January 1, 2024. It uses the same six items as Georgia, given at or before consummation. Brokers are barred from advance fees and misleading statements and must show a physical address and phone number in their advertising. The Attorney General enforces it, and there is no registration.

Connecticut

Connecticut's Public Act 23-201 covers sales-based financing of $250,000 or less. It took effect on July 1, 2024, and registration was due by October 1, 2024. The Department of Banking prescribes the disclosure form: total financing, any charges deducted at funding, disbursement amount, finance charge, total repayment, estimated term, payment schedule or method with an average projected monthly payment, other fees, collateral, broker compensation and prepayment or refinancing charges. Providers and brokers register with the Banking Commissioner through NMLS every year.

Kansas

The Kansas Commercial Financing Disclosure Act (SB 345) took effect on July 1, 2024. It covers loans, credit lines and receivables purchases, including merchant cash advances, of $500,000 or less. The disclosure uses labelled items: total amount of funds provided, total amount of funds disbursed, total of payments, total dollar cost of financing, payments (or estimated payments) and prepayment. There is no registration.

Missouri

Missouri's law (RSMo §427.300) took effect on August 28, 2024. Its disclosure and broker registration requirements began on February 28, 2025. It covers transactions of $500,000 or less and uses the same labelled items as Kansas. Brokers, but not providers, register with the Division of Finance, post a $10,000 surety bond and renew every January.

Texas

Texas HB 700 created Finance Code chapter 398 for commercial sales-based financing. The disclosure, confession-of-judgment and automatic-debit provisions took effect on September 1, 2025, and the OCCC's rules followed on July 9, 2026. The law covers offers under $1 million. The itemised disclosure includes the total financing, disbursement amount, finance charge, total repayment, estimated repayment period, payment amounts with an average projected monthly payment for variable plans, other fees, early-payoff charges, collateral and broker compensation. Providers and brokers already in business must register with the OCCC through NMLS by December 31, 2026. Texas also bars a provider from automatically debiting a business's account unless it holds a perfected first-priority security interest in that account.

Louisiana

Louisiana's HB 470 took effect on August 1, 2025. It requires a written disclosure on revenue-based financing, meaning financing repaid as a share of sales or revenue, with no dollar cap. It lists six items: funds provided, amount disbursed if less, total to be repaid, total dollar cost, payment manner, frequency and amount (or the method if variable), and prepayment costs or discounts. The law states that no interest-rate disclosure is required. Commentators note that it does not say whether the provider or the broker must deliver the disclosure. The official legislature site could not be read for this update, so this row rests on two law-firm summaries.

Vermont

Vermont's Act 142 of 2026 (H.648) brings sales-based financing and factoring into the state's licensing law from July 1, 2027, for contracts entered into or modified from that date. It applies to transactions under $1 million. The disclosure includes an estimated APR, the finance charge, total repayment, estimated term, payment amounts with an average projected monthly payment, fees and collateral. Providers need a lender licence, and anyone presenting offers for someone else needs a loan solicitation licence.

Bills to watch (not law)

Several states have considered bills that did not pass, and some online lists wrongly count them as law. As of this update, New Jersey (S1760 / A4580, an APR disclosure bill) was still in committee. Illinois' Small Business Financing Transparency Act (SB 260) did not advance in 2026. In Maryland, SB 881 was reported to have passed the Senate in 2026 but not the House. We have not confirmed these statuses on the official legislature sites, so they are not in the table. We will add a state when a law is enacted and verified.

What an owner should see on an offer

Whatever your state requires, these are the numbers worth having in writing before you sign any business funding agreement:

1. Amount funded and amount you actually receive. If fees are taken out at funding, the money that reaches your account is lower than the headline figure.
2. Total repayment in dollars. This is the one figure every structure can be compared on.
3. Total cost in dollars. Total repayment minus what you receive.
4. Payment amount, frequency and estimated term. Daily, weekly or a percentage of sales, and roughly how long until it is paid.
5. An estimated APR. This is required in some states and useful everywhere. It is the only figure that compares cost over time. Our MCA cost study shows how the same factor rate can mean 37% or 217% depending on the term.
6. Prepayment terms. Whether paying early saves anything.
7. Every other fee, and what happens if a payment fails or sales drop.

You can check any offer yourself with our MCA calculator. Enter the amount, factor rate, term and fee to see the payment, the cost per dollar and an estimated APR. For background, see how factor rates work and what business funding costs.

Related: MCA cost study · MCA calculator · Merchant cash advance · What is a factor rate

If you want an offer you can measure this way, checking your options takes about 60 seconds. It uses a soft credit pull only, there is no cost to apply, and there are no broker fees. Start an application or request a callback.

Common questions

Which states require an APR on a merchant cash advance?

California and New York require an estimated APR on covered commercial financing offers, including merchant cash advances. Vermont will too from July 1, 2027. Other states with disclosure laws, such as Utah, Virginia, Georgia, Florida, Connecticut, Kansas, Missouri, Texas and Louisiana, require the total cost in dollars and the payment terms, but not an APR.

Do these laws apply to large deals?

Usually not. Most cover transactions of $500,000 or less. Connecticut covers $250,000 or less, Utah $1 million or less, Texas and Vermont under $1 million, and New York up to $2.5 million. Louisiana has no dollar cap.

Which states require merchant cash advance providers or brokers to register?

Virginia, Connecticut and Texas require both providers and brokers to register. Utah requires providers to register, and Missouri requires brokers only. Vermont will require licences from July 2027, and California adds licensing under AB 2116 from 2028.

What is the difference between a factor rate and an APR?

A factor rate shows the total cost per dollar (1.30 means $1.30 repaid for each $1 advanced), regardless of how long repayment takes. An APR shows the cost per year, so a shorter term gives a higher APR for the same factor rate.

Is a merchant cash advance a loan under these laws?

These disclosure laws generally cover merchant cash advances as sales-based or revenue-based financing, or as accounts receivable purchases, whether or not they are loans. Whether a particular agreement is a loan under other state law is a separate legal question for an attorney.

How often is this tracker updated?

We review it when a state enacts or amends a commercial financing disclosure law, and the date at the top shows the last review.