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MCA Disclosure Laws

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State-by-State Commercial Financing Disclosure Guide (2025 Edition)

This guide summarizes current state commercial-financing disclosure laws and near-term developments as of October 2025.

It’s organized into Section A (states with enacted laws and key operational details), Section B (active bills and licensing updates to watch), and Section C (states with no specific CFDL activity).

For each enacted state, you’ll find scope, exemptions, timing, disclosure content, enforcement, and operator checklists to speed implementation.

This resource is compliance-oriented and plain-English, but it’s not legal advice. Always consult the underlying statutes, regulations, and agency guidance before finalizing forms or workflows.

Because these rules evolve, keep a change log and recheck official sources before each rollout or audit.

*For real-time updates as laws change, see our **live tracker**:* [https://onyxiq.com/commercial-financing-disclosure-laws/](https://onyxiq.com/commercial-financing-disclosure-laws/)

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Stay Compliant with Onyx IQ

Regulatory change is constant—and staying compliant across multiple states can quickly become complex. **Onyx IQ** simplifies compliance monitoring, disclosure tracking, and regulatory readiness for commercial and alternative-financing providers.

With Onyx IQ, you can:

  • **Centralize compliance** — Track legislative changes and enforcement updates across all 50 states.
  • **Automate disclosure workflows** — Generate state-specific disclosure templates and update them as rules evolve.
  • **Monitor licensing and registration deadlines** — Avoid missed filings or renewal lapses.
  • **Stay audit-ready** — Maintain recordkeeping and evidence trails that align with DFPI, DFS, SCC, and other regulators’ expectations.

Our platform continuously monitors for new legislation and regulatory updates—so you can focus on funding, not formatting.

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Index

**A) [States with commercial-financing disclosure laws](#section-a:-states-with-laws-passed) (11)**

  1. [**California**](#california) **(CA)** — APR, SBF, Reg (DFPI guidance), effective Dec 9, 2022
  1. [**New York**](#new-york) **(NY)** — APR, SBF, effective Aug 1, 2023
  1. [**Connecticut**](#connecticut) **(CT)** — SBF ≤ $250K + registration, effective Jul 1, 2024
  1. [**Florida**](#florida) **(FL)** — Disclosure law, effective Jan 1, 2024
  1. [**Georgia**](#georgia) **(GA)** — Disclosure ≤ $500K, effective Jan 1, 2024
  1. [**Kansas**](#kansas) **(KS)** — Disclosure ≤ $500K, effective Jul 1, 2024
  1. [**Missouri**](#missouri) **(MO)** — Disclosure + broker bond, effective Feb 28, 2025
  1. [**Utah**](#utah) **(UT)** — Registration + disclosure, effective Jan 1, 2023
  1. [**Virginia**](#virginia) **(VA)** — SBF registration + disclosure, effective Jul 1, 2022
  1. [**Texas**](#texas) **(TX)** — SBF disclosure + registration, effective Sep 1, 2025
  1. [**Louisiana**](#louisiana) **(LA)** — RBF disclosure, effective Aug 1, 2025

**B) [States with bill activity or licensing updates](#section-b:-states-with-bill-activity-or-licensing-updates) (11)**

  1. [**Illinois**](#illinois-(il)) **(IL)** — multiple bills (2023–2025), none enacted
  1. [**Kentucky**](#kentucky-(ky)) **(KY)** — HB 680 (2025) filed, not advanced
  1. [**Maryland**](#maryland-(md)) **(MD)** — SB 754 (2025) advanced, not enacted
  1. [**New Jersey**](#new-jersey-(nj)) **(NJ)** — S 1397 (2024–25) pending
  1. [**North Carolina**](#north-carolina-(nc)) **(NC)** — S 539 (2023) introduced, no movement
  1. [**Pennsylvania**](#pennsylvania-(pa)) **(PA)** — HB 1792 (2023–24) stalled
  1. [**South Carolina**](#south-carolina-(sc)) **(SC)** — S 347 (2025–26) pending
  1. [**Mississippi**](#mississippi-(ms)) **(MS)** — SB 2619 / HB 1271 (2023) failed
  1. [**North Dakota**](#north-dakota-(nd)-—-licensing-expansion) **(ND)** — HB 1127 (2025) licensing expansion
  1. [**Arkansas**](#arkansas-(ar)-—-financial-services-update) **(AR)** — Act 343 (2025) credit-reporting update
  1. [**Alaska**](#alaska-(ak)-—-rate-cap-debate) **(AK)** — SB 39 (2025) rate-cap bill vetoed

**C) [States with no CFDL or bill activity](#section-c-—-states-with-no-commercial-financing-disclosure-law-or-bill-activity) (28)**

Alabama (AL), Arizona (AZ), Colorado (CO), Delaware (DE), Hawaii (HI), Idaho (ID), Indiana (IN), Iowa (IA), Maine (ME), Massachusetts (MA), Michigan (MI), Minnesota (MN), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Mexico (NM), Ohio (OH), Oklahoma (OK), Oregon (OR), Rhode Island (RI), South Dakota (SD), Tennessee (TN), Vermont (VT), Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY).

**Section A: States with Laws Passed** {#section-a:-states-with-laws-passed}

This section covers every state that has formally enacted a commercial-financing disclosure law as of 2025. Each entry outlines when the law took effect, who it applies to, what must be disclosed, and how it is enforced. The summaries highlight registration or licensing requirements, exemptions, and practical compliance steps for funders, brokers, and partners operating in those jurisdictions.

***Visual brief**: Simple section header with bold navy title “Section A: States with Laws Passed,” teal divider line beneath, and a short intro paragraph in dark gray text for clarity. Use light gray background band or subtle map texture to visually separate it from the following state pages.*

***Visual brief for all states in section A**: Two-column layout: state name and flag or outline map on the left (≈25%), text content on the right (≈75%). Consistent subhead hierarchy (“Where We Are Currently,” “How We Got Here,” etc.) in teal, body text in dark gray. Add a thin divider between sections for readability. End each state with a shaded checklist box for “Operator Checklist” using light teal background and checkmark icons for each bullet.*

**California** {#california}

Where We Are Currently

Effective since December 9, 2022, California’s regulations require providers of certain commercial financing to deliver standardized disclosures, including an APR for covered products. These rules apply to a range of commercial financing transactions, including sales-based financing, and are administered by the Department of Financial Protection and Innovation. California was one of the first states to set this bar for small business financing. [DFPI](https://dfpi.ca.gov/press_release/dfpis-commercial-financing-disclosure-regulations-approved-to-become-effective-as-of-december-9-2022/?utm_source=chatgpt.com)

How We Got Here

The DFPI’s Commercial Financing Disclosure Regulations were approved June 9, 2022, and took effect December 9, 2022. The requirements sit in Division 9.5 of the California Financial Code, with DFPI guidance and rule text available on the agency site. [DFPI](https://dfpi.ca.gov/press_release/dfpis-commercial-financing-disclosure-regulations-approved-to-become-effective-as-of-december-9-2022/?utm_source=chatgpt.com)

What Funders Need to Know

Subject

The law covers providers of commercial financing transactions making specific offers to recipients, and applies to brokers in certain roles. [DFPI](https://dfpi.ca.gov/rules-enforcement/laws-and-regulations/california-financing-law-regulations-opinions-releases/?utm_source=chatgpt.com)

Exemptions

Exemptions include depository institutions, certain technology service providers acting on behalf of a depository, true leases, transactions secured by real property, and other carve-outs listed in §22801.

Compliance Requirement

The disclosure regs do not add a separate license, but providers licensed under the California Financing Law are expressly “subject to examination and enforcement” for Division 9.5 compliance. [California.Public.Law](https://california.public.law/codes/financial_code_section_22805?utm_source=chatgpt.com)

Disclosure Requirements

Required items include, among others, total funds provided, total repayment, finance charge, payment method and frequency, prepayment policies, and an APR disclosure calculated under DFPI’s model for the relevant product type. Disclosures must be provided before the recipient signs a final agreement. [DFPI](https://dfpi.ca.gov/rules-enforcement/laws-and-regulations/california-financing-law-regulations-opinions-releases/?utm_source=chatgpt.com)

Other Rules (optional)

Division 9.5 and the DFPI rules include product-specific calculation methods (e.g., for sales-based financing and factoring) and anti-evasion/application provisions in the statute and implementing regulations. [DFPI](https://dfpi.ca.gov/regulated-industries/california-financing-law/about-california-financing-law/california-financing-law-commercial-financing-disclosures/?utm_source=chatgpt.com)

Penalties

DFPI enforces Division 9.5; providers licensed under the CFL are examinable and enforceable by DFPI for violations of Division 9.5 and its rules. [California.Public.Law](https://california.public.law/codes/financial_code_section_22805?utm_source=chatgpt.com)

Official Documents (links)
  • DFPI: Commercial Financing Disclosures (overview), Department of Financial Protection and Innovation. [DFPI](https://dfpi.ca.gov/regulated-industries/california-financing-law/about-california-financing-law/california-financing-law-commercial-financing-disclosures/?utm_source=chatgpt.com)
  • DFPI Press Release: Regulations effective December 9, 2022, Department of Financial Protection and Innovation. [DFPI](https://dfpi.ca.gov/press_release/dfpis-commercial-financing-disclosure-regulations-approved-to-become-effective-as-of-december-9-2022/?utm_source=chatgpt.com)
  • California Financial Code Division 9.5 (Commercial Financing Disclosures), DFPI. [DFPI](https://dfpi.ca.gov/rules-enforcement/laws-and-regulations/california-financing-law-regulations-opinions-releases/?utm_source=chatgpt.com)
Expert Opinions and Analysis (links)

California’s Commercial Finance Disclosure Laws: A Guide, Monitor Daily. [Monitor Daily](https://www.monitordaily.com/article/californias-commercial-finance-disclosure-laws-a-guide/?utm_source=chatgpt.com)

Operator Checklist

  • Confirm your product falls within covered “commercial financing” and whether APR is required. [DFPI](https://dfpi.ca.gov/rules-enforcement/laws-and-regulations/california-financing-law-regulations-opinions-releases/?utm_source=chatgpt.com)
  • Use DFPI-compliant APR methodology for your product type. [DFPI](https://dfpi.ca.gov/rules-enforcement/laws-and-regulations/california-financing-law-regulations-opinions-releases/?utm_source=chatgpt.com)
  • Include total funds provided, total repayment, finance charge, payment method/frequency, and prepayment terms. [DFPI](https://dfpi.ca.gov/rules-enforcement/laws-and-regulations/california-financing-law-regulations-opinions-releases/?utm_source=chatgpt.com)
  • Retain copies of disclosures and delivery evidence to demonstrate compliance during DFPI examinations under Division 9.5/CFL. [California.Public.Law](https://california.public.law/codes/financial_code_section_22805?utm_source=chatgpt.com)
  • Keep a change log tied to DFPI updates. [DFPI](https://dfpi.ca.gov/regulated-industries/california-financing-law/about-california-financing-law/california-financing-law-commercial-financing-disclosures/?utm_source=chatgpt.com)

Next Chapter

**New York** {#new-york}