**Connecticut** {#connecticut}

Connecticut {#connecticut}

Where We Are Currently

Effective since **July 1, 2024**, Connecticut requires providers of **commercial sales-based financing of $250,000 or less** to deliver standardized disclosures **and to register with the Department of Banking (DOB)**. While the framework mirrors features of California and New York, its combination of **sales-based-financing scope and provider registration** aligns more closely with regimes like **Utah** (provider registration) and **Virginia** (sales-based-financing provider/broker registration). The DOB issued interim guidance and adopted a limited **âno-actionâ period through September 30, 2024**, with enforcement resuming afterward. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com)

How We Got Here

An Act Requiring Certain Financing Disclosures was signed June 28, 2023, with an effective date of July 1, 2024. The Department of Banking issued guidance and a revised no-action position on August 1, 2024. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com)

What Funders Need to Know

Subject

Covers providers of commercial sales-based financing up to $250,000; includes certain broker and partner roles. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com)

Exemptions

The Act covers sales-based financing â¤$250,000 and includes statutory carve-outs (e.g., depository institutions and other specified categories). (See DoB guidance summarizing scope.) [CT.gov](https://portal.ct.gov/-/media/dob/consumer-credit-division/commercial-financing-guidance-8-1.pdf)

Compliance Requirement

Providers must register with the Connecticut Department of Banking; timing and renewal cadence are addressed in agency guidance. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com)

Disclosure Requirements

Disclosures cover core cost and payment elements, recipient signature, and timing aligned with the offer stage; the Department paused enforcement of disclosures through September 30, 2024, then resumed. [CT.gov](https://portal.ct.gov/-/media/dob/consumer-credit-division/commercial-financing-guidance-8-1.pdf?utm_source=chatgpt.com)

Other Rules (optional)

Agency FAQs and guidance clarify signatures and interim enforcement posture. [CT.gov](https://portal.ct.gov/-/media/dob/consumer-credit-division/commercial-financing-guidance-8-1.pdf?utm_source=chatgpt.com)

Penalties

Administrative enforcement by the Department of Banking.

Official Documents (links)

CT Department of Banking: Commercial Financing Guidance and No-Action (Revised Aug 1, 2024). [CT.gov](https://portal.ct.gov/-/media/dob/consumer-credit-division/commercial-financing-guidance-8-1.pdf?utm_source=chatgpt.com)

Expert Opinions and Analysis (links)

Connecticut Releases New Guidance on Commercial Financing Disclosures, Husch Blackwell. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com) New Commercial Financing Laws in Connecticut and Kansas, Greenberg Traurig. [Greenberg Traurig](https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=chatgpt.com)

Operator Checklist

Confirm your offer is âsales-based financingâ and at or below $250,000. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com)

Register with the Department of Banking before offering covered products. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/connecticut-releases-new-guidance-on-commercial-financing-disclosures-what-you-need-to-know?utm_source=chatgpt.com)

Collect recipient signature on disclosures; follow the post-Sept 30, 2024 enforcement stance. [CT.gov](https://portal.ct.gov/-/media/dob/consumer-credit-division/commercial-financing-guidance-8-1.pdf?utm_source=chatgpt.com)

Keep copies of disclosures and proof of delivery

MCA Disclosure Laws