Commercial Financing Disclosure
Laws (By State)

A clear, up-to-date guide commercial financing disclosure requirements across U.S. states. Understand what’s required, when it applies, and how it affects your operations. 

How to use this resource 

This directory summarizes state-level laws governing commercial or sales-based financing.
Each state entry includes effective dates, covered transactions, disclosure requirements, and official references. Information is verified against official state sources and updated regularly. 

Select a state to view its Disclosure Requirements 

Click any state on the map below to view its latest commercial financing disclosure requirements. Use the map to explore states where laws are in effect, pending, or proposed. 

Laws Passed 

Some states have enacted commercial financing disclosure laws. These states currently set the standard for compliance in the evolving regulatory landscape.

Laws Proposed 

Several states are currently considering or drafting legislation to introduce commercial financing disclosure requirements. These proposals vary in scope and terminology but share a common goal: improving transparency and consistency in alternative lending. This section tracks bills that are pending, in committee review, or awaiting signature. 

Connecticut

Where We Are Now

Bill 1032, also known as SB1032, became Connecticut law on June 7, 2023. It officially came into effect on July 1, 2024, and specifically deals with disclosure requirements for sales-based financing (i.e., merchant cash advances) of $250,000 or less. It also requires providers to register with the state on an annual basis.

How We Got here

“An Act Requiring Certain Financing Disclosures” was first introduced by the House Banking Committee as its primary sponsor and co-sponsored by Senators Patricia Miller, John Kissel, Robert Sampson, Kevin Kelly, and Rep. Tom Delnicki. It went through the Senate between February and early June of 2023—it was passed by the House in a matter of days.

The Act was signed into law by Governor Ned Lamont on June 28, 2023. The Connecticut Act came into effect on July 1, 2024.

What Funders Need to Know

Subject
The Connecticut law applies to providers—including commercial financial brokers—of sales-based financing products.

Exemptions
This law allows for some exemptions—including entities that conduct no more than five commercial financing transactions in a 12-month period.

Compliance Requirement
To do business in the state of Connecticut, providers must register with the state banking commissioner by October 1, 2024—and renew their registration every year.

Disclosure Requirements
Before making a final and binding offer, providers must give borrowers certain information. This information includes standard disclosures including the total amount of the loan and cost of borrowing, a repayment schedule, details about how much money brokers will earn from the transaction, and more. Providers are not required to disclose estimated APR.

Other Rules
The Connecticut law also includes some unique rules.

First, loan agreements cannot force borrowers to give up their right to a hearing over a prejudgment remedy. Historically, some lenders have added this verbiage into contracts, effectively enabling them to take money from borrowers’ bank accounts without going to court.

As well, Connecticut’s law allows the Department of Banking to recognize and use another state’s loan disclosure rules if they meet or exceed the requirements of Connecticut’s law. This is the first such rule of all state commercial disclosure laws passed—and may help save time and money for providers that have been following the rules of another state.

Penalties
Those who breach the Connecticut law may face civil penalties of up to $100,000 per violation.