Louisiana {#louisiana}

Where We Are Currently

Effective **August 1, 2025**, Louisiana requires **written disclosures** for **revenue-based financing** transactions **at or before consummation**. The law (HB 470, 2025 Regular Session) was signed **June 8, 2025** and also clarifies that amounts charged in an RBF transaction are **not interest** and that **APR (or factor-rate) disclosure is not required**. [legis.la.gov](https://www.legis.la.gov/Legis/BillInfo.aspx?i=248484&utm_source=chatgpt.com)

How We Got Here

HB 470 (2025 Regular Session) advanced with Senate amendments specifying disclosure items and timing; effective date August 1, 2025. ([Louisiana Legislature](https://www.legis.la.gov/legis/BillInfo.aspx?i=248607))

What Funders Need to Know

Subject

Applies to providers of revenue-based financing; scope and definitions are set in the enacted section. ([Louisiana Legislature](https://www.legis.la.gov/legis/BillInfo.aspx?i=248607))

Exemptions

The enrolled Act includes exemptions (e.g., financial institutions and other carve-outs) specific to revenue-based financing, as set in the final text. [LegiScan](https://legiscan.com/LA/text/HB470/id/3230621?utm_source=chatgpt.com)

Compliance Requirement

No separate license called out in summaries; follow disclosure content/timing as enacted.

Disclosure Requirements

Provide specified items (funds provided, total dollar cost, total repayment, payment method/frequency, fees, prepayment terms) at or before consummation.

Other Rules (optional)

Session drafts adjusted APR references; confirm final text before form design. ([Louisiana Legislature](https://www.legis.la.gov/legis/BillInfo.aspx?i=248607))

Penalties

Enforcement and penalties are provided in the enacted section, effective August 1, 2025.

Official Documents (links)

HB 470 (2025) – House/Senate amendments and enrolled text. ([Louisiana Legislature](https://www.legis.la.gov/legis/BillInfo.aspx?i=248607))

Expert Opinions and Analysis (links)

Louisiana Enacts Revenue-Based Financing Disclosures (effective Aug 1, 2025) ([Mayer Brown](https://www.mayerbrown.com/en/insights/publications/2025/08/louisiana-now-requires-disclosures-for-revenue-based-financing-transactions?utm_source=chatgpt.com))

Operator Checklist

• Confirm the transaction is revenue-based financing and within scope. ([Louisiana Legislature](https://www.legis.la.gov/legis/BillInfo.aspx?i=248607))

• List all required items and present at/before consummation; capture signature. ([Mayer Brown](https://www.mayerbrown.com/en/insights/publications/2025/08/louisiana-now-requires-disclosures-for-revenue-based-financing-transactions))

• Align language with final enrolled text (post-amendments). ([Louisiana Legislature](https://www.legis.la.gov/legis/BillInfo.aspx?i=248607))

• Maintain copies/signatures of disclosures delivered at or before consummation to evidence compliance once the law takes effect. [LegiScan](https://legiscan.com/LA/bill/HB470/2025?utm_source=chatgpt.com)

**Section B: States with Bill Activity or Licensing Updates** {#section-b:-states-with-bill-activity-or-licensing-updates}

As of **October 2025**, several states have introduced or advanced bills addressing commercial-financing disclosures, licensing, or related registration requirements, but have not yet enacted final laws. This section tracks active proposals, carry-over measures, and notable licensing developments that may affect providers, brokers, and partners. Each entry summarizes current status, legislative history, and key operator watchpoints.

***Visual brief***: *Clean section header in navy: “Section B: States with Bill Activity or Licensing Updates.”* *Teal accent line below the title and a light gray background band to differentiate it from Section A.* *Intro paragraph in dark gray, concise and easy to scan, with subtle icon or outline of a state capitol dome to signal legislative focus.*

**Visual brief for all states in section B**: *Two-column format mirroring Section A for consistency.* *Left side: small state outline or flag (≈25%), right side: main text (≈75%).* *Use teal subheads (“Where We Are Currently,” “How We Got Here,” etc.).* *Include a “Status Tag” at the top of each state—small teal or yellow pill-shaped label reading “Bill in Progress” or “Pending.” Finish with a shaded “Operator Checklist” box in light teal with simple checkmark icons for clarity.*

**Illinois (IL)** {#illinois-(il)}

**Where We Are Currently** Multiple bills such as SB 2234 (2023–24) and HB 3477 (2025–26) propose a “Small Business Financing Transparency” regime with registration and disclosure requirements for providers of commercial financing. [LegiScan](https://legiscan.com/IL/text/SB2234/id/2693367?utm_source=chatgpt.com)

**How We Got Here** SB 2234 was introduced Feb 10 2023, referred to committee; HB 3477 introduced Mar 18 2025. [LegiScan](https://legiscan.com/IL/text/HB3477/id/3109034?utm_source=chatgpt.com)

**What Funders Need to Know** No law yet—monitor for carry-over into next session and review registration/disclosure templates in draft bills.

**Official Documents (links)**

• Bill text: SB 2234. [ilga.gov](https://www.ilga.gov/legislation/104/SB/10400SB0260.htm?utm_source=chatgpt.com)

**Expert Opinions and Analysis (links)**

• Husch Blackwell alert on upcoming IL bill. [Husch Blackwell](https://www.huschblackwell.com/newsandinsights/illinois-bill-seeks-to-add-consumer-type-disclosures-and-broad-enforcement-to-commercial-financing?utm_source=chatgpt.com)

**Operator Checklist**

• Track IL GA committee calendars for next session.

• Prepare draft disclosure templates and registration workflows.