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California implemented a new disclosure law on December 9th, 2022. It is requiring lenders and finance companies to provide specific information for certain commercial transactions. Such as small business loans and merchant cash advances. The law’s regulations detail the content of these disclosures, covering all commercial loan and cash advance transactions, and requiring the disclosure of specific information on all terms.
Virginia has become the second state to introduce a registration regime for MCA providers. This new law requires MCA providers to register with the Virginia State Corporation Commission by November 1, 2022, and annually thereafter. The law also extends the registration requirement to “sales-based financing brokers.” Providers and brokers must also obtain authority to transact business in Virginia.
Utah signed SB183 into law, which requires commercial financing providers to register formally with the State and provide standardized disclosures for their transactions. Starting January 1, 2023, these providers must obtain approval from the State to conduct business with Utah customers. The law mandates specific disclosures to be included in contracts.
California implemented a new disclosure law on December 9th, 2022. The law required lenders and finance companies to provide specific information for certain commercial transactions, such as small business loans and merchant cash advances. The regulations detailed the content of these disclosures, covering all commercial loan and cash advance transactions, and mandated the disclosure of specific information on all terms.
Virginia became the second state to implement a registration system for MCA (Merchant Cash Advance) providers. The new law mandated MCA providers to register with the Virginia State Corporation Commission by November 1, 2022, and on an annual basis thereafter. The law also applied the registration requirement to "sales-based financing brokers." Both providers and brokers were obligated to obtain authorization to conduct business in Virginia.
Utah signed SB183 into law, which required commercial financing providers to register formally with the State and provide standardized disclosures for their transactions.
New York is introducing laws that require consumer-style disclosures for commercial financing transactions. The state's Department of Financial Services initially postponed compliance until the Final Regulations were issued, which happened on February 1, 2023. These regulations are set to be enforced starting from August 1, 2023.
