State Commercial Financing Disclosure Laws 2026: an MCA broker's map
In 2018, exactly one state — California — required disclosures on commercial financing. As of mid-2026, at least ten states do, and the pace is accelerating: Texas and Louisiana both enacted sales-based-financing disclosure laws in 2025, and California tightened its rules again with SB 362 effective January 1, 2026. For merchant cash advance (MCA) and revenue-based-financing brokers, "which states regulate this?" is no longer a niche question. This is the practical map.
1. The trend: a slow trickle became a wave
Adoption clustered hard in 2024–2025. Four states reached effective disclosure requirements in 2024 (Florida, Georgia, Kansas, Connecticut) and the 2025 wave (Missouri, Texas, plus Louisiana) pushed the count to double digits.
2. The state-by-state map
| State | Law / effective | Threshold | Registration | Product scope |
|---|---|---|---|---|
| California | SB 1235 (rules eff. 2022); SB 362 eff. Jan 1, 2026 | ≤ $500K | Lender licensing (CFL) | All commercial financing |
| New York | CFDL — eff. Aug 1, 2023 | ≤ $2.5M | — | All commercial financing |
| Utah | Reg. & Disclosure Act — eff. Jan 1, 2023 | (broad) | Yes — DFI | Commercial financing |
| Virginia | eff. Jul 1, 2022 | (sales-based) | Yes — SCC | Sales-based financing |
| Florida | mandatory compliance Jan 1, 2024 | ≤ $500K | — | Commercial financing |
| Georgia | eff. Jan 1, 2024 (FBPA amend.) | ≤ $500K | — | Commercial financing |
| Kansas | Comm. Financing Disclosure Act — eff. Jul 1, 2024 | ≤ $500K | — | Commercial financing |
| Missouri | SB 1359 (§427.300) — eff. 2025 | ≤ $500K | Yes — broker + surety bond | Commercial financing |
| Connecticut | registration by Oct 1, 2024 | ≤ $250K | Yes — Dept. of Banking | Sales-based financing |
| Texas | HB 700 — disclosure eff. Sep 1, 2025; OCCC reg. by Dec 31, 2026 | (sales-based) | Yes — OCCC | Sales-based financing |
Thresholds are the upper limit below which disclosures apply (transactions above the cap are generally exempt). "Sales-based financing" is the statutory term most states use for MCAs. Louisiana also enacted a 2025 law and is not shown in the table pending final effective-date guidance.
3. Three shifts every broker should track
a) From disclosure to registration. Early laws (California, New York) focused on what you must disclose. Newer ones increasingly require who may operate: Utah, Virginia, Connecticut, Missouri, and Texas all layer in provider or broker registration — and Missouri adds a surety-bond requirement. Registration deadlines have teeth (Texas: register with the OCCC by December 31, 2026).
b) MCAs are named directly. Several states now write "sales-based financing" into the statute — the exact structure of a merchant cash advance — so brokers can't assume a commercial-purpose carve-out. Virginia, Connecticut, and Texas are explicitly sales-based-financing regimes.
c) Language itself is regulated. California's SB 362 (effective January 1, 2026) restricts using the words "rate" and "interest" in ways the DFPI considers misleading, and forces re-disclosure of APR under its methodology. The direction of travel is toward standardized, APR-style, TILA-like disclosure — even though these are commercial, not consumer, transactions.
4. What it means for brokers
If you broker MCA or revenue-based financing across state lines, treat compliance as a per-state checklist, not a national default: (1) know each state's dollar threshold — a $180,000 advance is squarely inside every disclosure regime, while a $700,000 advance is exempt in most; (2) know where you must register before you solicit (Texas, Connecticut, Virginia, Utah, Missouri); (3) make sure your funder's disclosure documents actually satisfy the state where the merchant is located, since liability can reach brokers, not just providers. The transparent brokers win here — the disclosure a regulator mandates is the same disclosure a good broker was already giving.
For the broker-economics and paperwork side of this, see how MCA brokers get paid and ISO agreement vs. direct funder.
5. What it means for merchants
If you're a business owner, these laws are on your side: in a covered state you're entitled to a standardized breakdown — total funds, total repayment, estimated APR, payment amount and frequency, and prepayment terms — before you sign. If you don't get one, ask. (Our plain-English guide to reading a working-capital quote covers what to look for.)
Jon Lynch Financial Group. State Commercial Financing Disclosure Laws 2026: An MCA Broker's Map. July 2026. https://jonlynchfinancial.com/research/state-commercial-financing-disclosure-laws-2026/
Licensed CC BY 4.0 — free to quote, chart, and link with attribution. Media/data requests: [email protected]
Sources
- Venable LLP — State Commercial Financing Disclosure Laws (Mar 2026)
- Onyx IQ — Commercial Financing Disclosure Laws by State (2026 guide)
- Mayer Brown — Texas Commercial Financing Disclosure & Registration (HB 700)
- Manatt — Texas and Louisiana Pass Revenue-Based Financing Disclosure Laws
- Buchalter — California SB 362 (effective Jan 1, 2026)
- Womble Bond Dickinson — Florida Enacts Commercial Financing Disclosure Law
- American Bar Association — State Survey of Standard Commercial Financing Disclosure Laws
- California DFPI — Commercial Financing Disclosures