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. 

New York

The Commercial Finance Disclosure Law (CFDL) in New York covers various types of commercial financing for amounts up to $2.5 million. This includes sales-based financing (like merchant cash advances), closed-end and open-end financing, factoring transactions, lease financing, and more.

How We Got here

In 2020, New York introduced the CFDL, which was later expanded to encompass various commercial financing transactions. After seeking input from stakeholders, the New York State Department of Financial Services (NYDFS) adopted these regulations on February 1, 2023.

Senator Kevin Thomas sponsored this legislation, working closely with Superintendent of Financial Services Adrienne A. Harris and the Department of Financial Services. The final rules bring crucial changes, altering the landscape of commercial financing transactions in New York.

In January 2021, Senator James Sander Jr. proposed Senate Bill S1061B, requiring all commercial lenders to be licensed and regulated by the Department of Financial Services. This bill was referred to Senate Finance in May 2022.

What Funders Need to Know

Subject
This law applies to non-bank entities that provide commercial financing, as well as those who promote such offers on behalf of others. Regulations only apply to commercial financing transactions when either the borrower’s business is mainly run from New York, or if the recipient is an individual who legally resides in New York.

Exemptions
Financial institutions (i.e., banks, industrial loan companies, savings and loan associations, and credit unions) and subsidiaries are exempt from the law, as are lenders regulated under the federal Farm Credit Act, providers who make no more than five commercial financing transactions in New York in a 12-month period, and others.

Exempted transactions include—but are not limited to—real estate-secured commercial financing transactions, true leases, and commercial financing transactions exceeding $2.5 million.

Compliance Requirement
There is no state registration requirement under the New York CFDL. However, as mentioned above, this may change if Senate Bill S1061B eventually passes.

Disclosure Requirements
The New York regulations mandate Truth in Lending-like written disclosures when providers extend financing offers—including the total amount of commercial financing, disbursement amount, the finance charge, the annual percentage rate, among other items. In transactions involving a broker, providers must also disclose how and by whom brokers will be compensated.

Penalties
Fines may be up to $2,000 for each violation, or as much as $10,000 if the violation was intentional. In addition to fines, the NYDFS may mandate restitutions or issue legal orders.