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The short answer
A commercial financing disclosure law makes a funder show the cost of an offer in a standard way before you sign, much like a loan disclosure. Several of these laws reach merchant cash advances, which they call sales-based financing or accounts receivable purchases. Some also add duties for brokers.
As of Oct 20, 2026, 11 states have such laws in force and Vermont has enacted one that starts July 1, 2027. They differ on three things that matter most: the largest deal they cover, which products count, and whether brokers must register. Every row below links to the statute or regulation we read.
Your rights, using New York as the example
For a covered offer, New York Financial Services Law section 803 makes the provider show you, in writing, before you sign:
- The total amount of the financing, and what you actually receive after any fees are taken out.
- The finance charge.
- An estimated APR that includes fees and finance charges.
- The total repayment amount.
- The estimated term and the projected payments.
- What it costs to pay early, if anything.
Other states on this list require similar items; check the row for your state. General information, not legal advice. As of Oct 20, 2026.
The state table
Sorted by the date each law took effect. Scroll sideways on a phone.
| State | Law | Effective | Deal size covered | Products | Broker registration |
|---|---|---|---|---|---|
| Virginia | Va. Code 6.2-2228 to 6.2-2238 | Registration by Nov 1, 2022 | Exempts a single deal over $500,000 | Sales-based financing only | Yes, with the SCC ($1,000, then $500 a year); reaches internet brokers with no Virginia office |
| California | Fin. Code 22800-22807; 10 CCR 900-956 | Disclosure rules operative Dec 9, 2022 | Offers of $500,000 or less | Closed-end, open-end, factoring, sales-based, lease, asset-based, other | None under this law; brokers must pass the funder's disclosures on unaltered (10 CCR 952) |
| Utah | Utah Code 7-27-101 to 7-27-301 | Jan 1, 2023 | Exempts deals over $1,000,000 | Commercial loans, open-end, accounts receivable purchases (including MCAs) | No; registration is for providers only |
| New York | Fin. Serv. Law Art. 8; 23 NYCRR 600 | Rules (Part 600) adopted Feb 1, 2023 | Exempts deals over $2,500,000 | Sales-based, closed-end, open-end, factoring, other | None; estimated APR must be disclosed (FSL 803(c)) |
| Florida | Fla. Stat. 559.961-559.9615 | Deals on or after Jan 1, 2024 | Exempts deals over $500,000 | Commercial loans, open-end, accounts receivable purchases (including MCAs) | None |
| Georgia | O.C.G.A. 10-1-393.18 | Jan 1, 2024 | Exempts deals over $500,000 | Commercial loans, open-end, accounts receivable purchases | None |
| Connecticut | Conn. Gen. Stat. 36a-861 to 36a-872 | July 1, 2024; registration by Oct 1, 2024 | Sales-based financing of $250,000 or less | Sales-based financing only | Yes, with the Banking Commissioner ($1,000, then $500 a year) |
| Kansas | K.S.A. 75-783 to 75-787 | July 1, 2024 | Exempts deals over $500,000 | Commercial loans, open-end, accounts receivable purchases | None |
| Missouri | RSMo 427.300 | Feb 28, 2025 if no state rules were made (rule status not verified) | Exempts deals over $500,000 | Commercial loans, open-end, accounts receivable purchases | Yes, with the Division of Finance, plus a $10,000 surety bond ($100, then $50 a year) |
| Louisiana | La. R.S. 9:3137.10 | Aug 1, 2025 | None stated | Revenue-based financing | None |
| Texas | Fin. Code ch. 398; 7 TAC 86 | Sept 1, 2025; businesses already operating register by Dec 31, 2026 | Disclosures on specific offers under $1 million | Commercial sales-based financing only | Yes, with the OCCC through NMLS ($1,000) |
| Vermont | 8 V.S.A. 2247 (Act 142) | July 1, 2027 | Does not apply to deals of $1,000,000 or more | Sales-based financing and factoring | Loan solicitation license, including online marketing, lead selling and referrals |
Source notes
California's official code site blocked automated access, so its statute is cited through the Assembly Banking Committee's official analysis and its rules through Cornell LII. Georgia's text is the House committee substitute the Senate agreed to; we did not retrieve the final enrolled copy. Whether Missouri's Division of Finance issued rules, which would change its start date, is not verified.
Where brokers must register
Four states make brokers register today, and a fifth adds a license in 2027.
- Virginia: register with the State Corporation Commission. The law covers brokers working "over the internet" whether or not they have a Virginia office (6.2-2235).
- Connecticut: register with the Banking Commissioner. Its definition of "provider" includes a commercial financing broker.
- Missouri: register with the Division of Finance and keep a $10,000 surety bond on file.
- Texas: register with the Office of Consumer Credit Commissioner through NMLS. Businesses already operating must register by Dec 31, 2026.
- Vermont, from July 1, 2027: a "loan solicitation license" for anyone who solicits for a third party, which the law says includes online marketing, selling lead information and referrals.
Broker conduct rules
Even where brokers do not register, several states set rules for how they act:
- No advance fees: Florida, Georgia, Kansas and Missouri bar brokers from charging fees before the deal.
- No misleading statements: Florida, Georgia and Kansas ban false or misleading representations. Texas rule 7 TAC 86.312 bans "false, misleading, or inaccurate statements in advertisements, solicitations" and requires keeping ads for one year.
- Address in ads: Florida requires a broker's advertisement to show "the actual address and telephone number" of the broker's business (559.9614(4)).
- Pass disclosures on unchanged: California (10 CCR 952) and New York (23 NYCRR 600.21) require brokers to deliver the funder's disclosures unaltered before presenting an offer.
States with no law
New Jersey has no commercial financing disclosure law as of Oct 20, 2026. S1760 was introduced Jan 13, 2026 and sent to the Senate Commerce Committee; A4580 was introduced Mar 10, 2026 and sent to the Assembly Financial Institutions and Insurance Committee. Read our New Jersey MCA law guide for what applies there today.
Maryland has none either. SB 881 passed the Senate 42-0 in 2026 but did not pass the House before the session ended.
We have not yet checked every other state's legislature one by one, so this page does not claim that the remaining states have no law. We add a state only after reading its official text.
Pending and failed bills
| State | Bill | Status as of Oct 20, 2026 |
|---|---|---|
| New Jersey | S1760 / A4580 | In committee; not enacted |
| Maryland | SB 881 / HB 1007 | Passed Senate 42-0; not enacted |
| Connecticut | HB 5211 | Passed House; retained in Senate; would have added APR and dropped the $250,000 cap |
| New York | S3177 / A4889 | Licensing bill; has not passed either house |
| Illinois | SB 260; HB 3477 | In committee; not enacted |
| Pennsylvania | HB 639 | Referred to Commerce; not reported out |
| South Carolina | S.347 | Referred to committee; no further action |
How to use this table
If you are a business owner, the table tells you whether the offer in front of you should come with a standard cost disclosure. In New York, for example, the provider must show an estimated APR. If a covered offer arrives without one, ask for it in writing.
Whatever state you are in, you can run any offer through the MCA true-cost calculator to see total payback in dollars and an estimated APR, and read how a merchant cash advance works before you sign.
Frequently asked questions
Written by the Business Funders editorial team. Every fact on this page links to the source we checked, listed below. Found an error? Tell us.
Sources
- California, 10 CCR 952 (Cornell LII), accessed Oct 20, 2026
- California Assembly Banking and Finance Committee, SB 362 analysis (restates Fin. Code 22800-22806), accessed Oct 20, 2026
- New York Financial Services Law Article 8, accessed Oct 20, 2026
- 23 NYCRR 600.21 (Cornell LII), accessed Oct 20, 2026
- Utah Code Title 7, Chapter 27, accessed Oct 20, 2026
- Virginia Code Title 6.2, Chapter 22.1, accessed Oct 20, 2026
- Florida Statutes 559.9614, accessed Oct 20, 2026
- Georgia SB 90 (2023), House committee substitute agreed by the Senate, accessed Oct 20, 2026
- Connecticut General Statutes Chapter 669, accessed Oct 20, 2026
- Kansas K.S.A. 75-786, accessed Oct 20, 2026
- Missouri RSMo 427.300, accessed Oct 20, 2026
- Texas HB 700 (89R), enrolled, accessed Oct 20, 2026
- Texas Finance Commission, adopted rules 7 TAC 86 (July 2026), accessed Oct 20, 2026
- Louisiana R.S. 9:3137.10 (Act 198 of 2025), accessed Oct 20, 2026
- Vermont Act 142 (H.648, 2026), as enacted, accessed Oct 20, 2026
- New Jersey S1760 (2026), introduced, accessed Oct 20, 2026
- Maryland SB 881 (2026 session), accessed Oct 20, 2026
- Connecticut HB 5211 (2026) bill status, accessed Oct 20, 2026