MCA Disclosure Laws
**Florida** {#florida}
Where We Are Currently
Effective for transactions **consummated on or after January 1, 2024**, Floridaâs **Commercial Financing Disclosure Law** (Part XIII of **Chapter 559, F.S.**) requires covered providers to deliver specified written disclosures for commercial loans, open-end credit, and accounts-receivable purchase transactions, and imposes conduct restrictions on **commercial-financing brokers**. Disclosures must be provided **at or before consummation** and include items such as total funds provided, total amount owed/total dollar cost, payment method/frequency (and first payment estimate if variable), and prepayment information. The law provides **exclusive enforcement authority to the Florida Attorney General**. **Transactions over $500,000** and other categories are exempt. [Florida Senate+2Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/BillText/er/PDF)
How We Got Here
CS/HB 1353 created the Florida Commercial Financing Disclosure Law, with text codified in section 559. The bill passed in 2023; the law applies to transactions consummated on or after January 1, 2024. [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
What Funders Need to Know
Subject
Applies to providers of commercial financing transactions and to commercial financing brokers operating in Florida. [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
Exemptions
Exemptions include depository institutions, certain transactions, and other categories outlined in the statute. [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
Compliance Requirement
The law does not impose provider licensing; it sets written disclosure duties and broker conduct standards. Enforcement authority is vested exclusively in the Florida Attorney General. [The Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353?utm_source=chatgpt.com)
Disclosure Requirements
Disclose, in writing: total amount of funds provided, total amount disbursed (if different), total amount owed, total dollar cost of financing, payment manner/frequency and the first payment estimate if variable, and prepayment cost/discount statement with references to the agreement. Applies to each covered transaction consummated on or after January 1, 2024. [Womble Bond Dickinson](https://www.womblebonddickinson.com/us/insights/alerts/florida-enacts-commercial-financing-disclosure-law?utm_source=chatgpt.com)
Other Rules (optional)
Defines commercial financing brokers and sets conduct standards. [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
Penalties
Statutory civil penalties are $500 per first-time violation (capped at $20,000) and $1,000 per repeat violation (capped at $50,000); violations do not render transactions void. [Buchalter](https://www.buchalter.com/insights/florida-enacts-commercial-financing-disclosure-law-mandatory-compliance-date-january-1-2024/?utm_source=chatgpt.com)
Official Documents (links)
Florida Legislature Staff Analysis, CS/HB 1353 (final). [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
Expert Opinions and Analysis (links)
Florida Enacts Commercial Financing Disclosure Law, Womble Bond Dickinson. [Womble Bond Dickinson](https://www.womblebonddickinson.com/us/insights/alerts/florida-enacts-commercial-financing-disclosure-law?utm_source=chatgpt.com)
Florida Enacts Commercial Financing Disclosure Law, Troutman Pepper. [consumerfinancialserviceslawmonitor.com](https://www.consumerfinancialserviceslawmonitor.com/2023/06/florida-enacts-commercial-financing-disclosure-law/?utm_source=chatgpt.com)
Operator Checklist
- Scope check: is the transaction a covered âcommercial financingâ consummated on or after Jan 1, 2024. [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
- Include all six disclosure items, including total dollar cost and prepayment statement. [Womble Bond Dickinson](https://www.womblebonddickinson.com/us/insights/alerts/florida-enacts-commercial-financing-disclosure-law?utm_source=chatgpt.com)
- If payments vary, show the manner/frequency and an estimate of the first payment. [Womble Bond Dickinson](https://www.womblebonddickinson.com/us/insights/alerts/florida-enacts-commercial-financing-disclosure-law?utm_source=chatgpt.com)
- Confirm any broker involvement is handled per Floridaâs broker provisions. [Florida Senate](https://www.flsenate.gov/Session/Bill/2023/1353/Analyses/h1353z1.IBS.PDF?utm_source=chatgpt.com)
Georgia {#georgia}
Where We Are Currently
Effective January 1, 2024, Georgiaâs law under SB 90 amends the Georgia Fair Business Practices Act (OCGA § 10-1-393.18 et seq.). The statute requires providers of commercial financing transactions of **$500,000 or less**âincluding commercial loans, commercial open-end credit plans, and accounts-receivable purchase transactionsâto deliver prescribed disclosures before consummation.[Mayer Brown](https://www.mayerbrown.com/en/insights/publications/2023/06/georgia-enacts-commercial-finance-disclosure-law-extending-legislative-trend?utm_source=chatgpt.com) The law also imposes restrictions on brokers (such as prohibiting advance fees) but does *not* impose APR calculations or provider licensing/registration beyond the threshold. [Buchalter](https://www.buchalter.com/insights/georgia-enacts-commercial-financing-disclosure-law-mandatory-compliance-date-january-1-2024/?utm_source=chatgpt.com)
How We Got Here
SB 90 (2023) added §10-1-393.18 to the FBPA, with the disclosure provisions operative January 1, 2024. (Buchalter)
What Funders Need to Know
Subject
The law applies to providers of covered commercial financing transactions and addresses commercial financing brokers. (Georgia Code)
Exemptions
Transactions over $500,000 and specified entities/transactions in statute.
Compliance Requirement
No separate license solely from this law; comply with statutory disclosure content/timing and broker limits.
Disclosure Requirements
Requires clear disclosure of key financing terms for transactions â¤$500,000; timing aligned with offer/consummation as specified. (Georgia Code)
Other Rules (optional)
Broker limitations and civil penalties are outlined in the code. (Georgia Code)
Penalties
Civil penalties and enforcement under the FBPA. (Georgia Code)
Official Documents (links)
- [GA Code §10-1-393.18 (Commercial Financing Disclosures)](https://law.justia.com/codes/georgia/title-10/chapter-1/article-15/part-2/section-10-1-393-18/?utm_source=chatgpt.com) â Justia
- Georgia General Assembly: [SB 90 (2023)](https://www.legis.ga.gov/legislation/63967)
Expert Opinions and Analysis (links)
- [Buchalter â âGeorgia Enacts Commercial Financing Disclosure Law, Mandatory Compliance Date January 1, 2024â](https://www.jdsupra.com/legalnews/georgia-enacts-commercial-financing-9245636/?utm_source=chatgpt.com)
Operator Checklist
- Check the â¤$500,000 threshold before you size your disclosure. (Georgia Code)
- Include the statutory disclosure items for loans, open-end credit, or A/R purchases, as applicable. (Georgia Code)
- Apply broker conduct limits and keep records of broker compensation. (Georgia Code)
- Document timing (offer vs. consummation) and retain signed copies.