MCA Disclosure Laws by State (2026)
A verified, state-by-state tracker of the commercial-financing and sales-based-financing disclosure laws that regulate merchant cash advances (MCAs). For each state we list the bill, its effective date, whether it requires an APR (versus dollar-cost only), whether it bans confessions of judgment, and whether it requires provider registration.
What is a commercial-financing disclosure law?
A merchant cash advance is legally structured as the purchase of your future receivables, not a loan. For years that structure meant MCAs escaped the Truth in Lending Act and the standardized cost disclosures consumers get on a credit card or mortgage. Starting with California in 2018, a growing number of states have closed that gap by passing commercial-financing disclosure laws (sometimes called "small business truth-in-lending" or "sales-based financing" laws).
These laws generally require a provider to hand you a standardized disclosure form before you sign, showing figures such as the total amount funded, the total dollar cost, the payment schedule, and, in a few states, an annual percentage rate (APR) so you can compare an MCA against a bank loan or line of credit on equal terms. A smaller set of states go further — requiring providers or brokers to register with the state, or banning confessions of judgment (contract clauses that let a funder obtain a court judgment against you without a lawsuit).
Why it matters: the disclosure regime that applies to your deal depends on where your business is based — not where the funder is headquartered. As of 2026-06-30, 12 states have enacted a disclosure law that reaches MCAs, while 38 states still have no specific commercial-financing disclosure statute. Only a handful — California, New York, Vermont — require an APR.
State-by-state MCA disclosure law table
Sorted by effective date. States not listed have no MCA-specific commercial-financing disclosure law as of 2026-06-30.
| State | Has law? | Law / Bill | Effective | APR required? | COJ banned? | Registration? |
|---|---|---|---|---|---|---|
| California | Yes | SB 1235 + SB 362 | Dec 9, 2022 (SB 1235 regs); Jan 1, 2026 (SB 362) | Yes | No | No MCA-specific registration |
| New York | Yes | S5470-B (CFDL) | Aug 1, 2023 (DFS regulations) | Yes | Yes (separate law) | No |
| Utah | Yes | Commercial Financing Registration & Disclosure Act | Jan 1, 2023 | No (dollar cost only) | No | Yes |
| Virginia | Yes | HB 1027 | Jul 1, 2022 (register by Nov 1, 2022) | No (dollar cost only) | No | Yes |
| Georgia | Yes | SB 90 (Fair Business Practices Act) | Jan 1, 2024 | No (dollar cost only) | No | No |
| Florida | Yes | HB 1353 (FCFDL) | Jan 1, 2024 | No (dollar cost only) | No | No |
| Connecticut | Yes | An Act Requiring Certain Financing Disclosures | Jul 1, 2024 | No (dollar cost only) | No | Yes |
| Kansas | Yes | SB 345 | Jul 1, 2024 | No (dollar cost only) | No | No |
| Missouri | Yes | SB 1359 | Feb 28, 2025 (signed Jul 11, 2024) | No (dollar cost only) | No | Yes (brokers) |
| Texas | Yes | HB 700 | Sep 1, 2025 | No (finance charge) | No | Yes |
| Louisiana | Yes | Act 198 (HB 470) | Aug 1, 2025 | No (dollar cost only) | No | No |
| Vermont | Yes | H.648 (Act 142) | Jul 1, 2027 | Yes | Yes | Yes (license) |
How to read this: "APR required" means the standardized disclosure must express an annual percentage rate; "dollar cost only" means the law mandates a total-cost figure but not an APR. "COJ banned" refers to confessions of judgment. "Registration" means the provider and/or broker must register or hold a license with the state. Amounts and exemptions vary by statute — see the notes below.
State-by-state notes
California
— SB 1235 + SB 362 · effective Dec 9, 2022 (SB 1235 regs); Jan 1, 2026 (SB 362)First U.S. state to require consumer-style APR disclosure for commercial financing. SB 362 (2026) requires the APR to be re-stated any time a price or rate is quoted.
New York
— S5470-B (CFDL) · effective Aug 1, 2023 (DFS regulations)Signed Dec 2020; enforcement began when NY DFS regulations took effect Aug 1, 2023. A separate 2019 law (CPLR §3218) bars confessions of judgment filed in New York against out-of-state debtors.
Utah
— Commercial Financing Registration & Disclosure Act · effective Jan 1, 2023One of the first two states (with Virginia) to require MCA providers to register with the state. Requires dollar-cost disclosure but not an APR.
Virginia
— HB 1027 · effective Jul 1, 2022 (register by Nov 1, 2022)Applies to sales-based financing under $500,000. Providers register with the Virginia State Corporation Commission; implementing disclosure-form regulations took effect Jan 19, 2023.
Georgia
— SB 90 (Fair Business Practices Act) · effective Jan 1, 2024Amended Georgia's Fair Business Practices Act. Applies to commercial financing of $500,000 or less. Explicitly does not require an APR calculation.
Florida
— HB 1353 (FCFDL) · effective Jan 1, 2024Applies to commercial financing of $500,000 or less. Requires total-cost/finance-charge disclosure but not an APR.
Connecticut
— An Act Requiring Certain Financing Disclosures · effective Jul 1, 2024Covers sales-based financing of $250,000 or less. Providers register annually with the Connecticut Department of Banking (began Oct 1, 2024). A separate 2026 bill to add APR disclosure was moving through the legislature.
Kansas
— SB 345 · effective Jul 1, 2024Applies to commercial financing of $500,000 or less. No APR requirement and no provider registration requirement.
Missouri
— SB 1359 · effective Feb 28, 2025 (signed Jul 11, 2024)The nation's ninth commercial-finance disclosure law. Requires disclosure by providers and registration by commercial-financing brokers. No APR requirement.
Texas
— HB 700 · effective Sep 1, 2025Covers commercial sales-based financing under $1 million. Providers and brokers must register with the Office of Consumer Credit Commissioner (by Dec 31, 2026). Also restricts automatic account debits absent a perfected first-priority security interest.
Louisiana
— Act 198 (HB 470) · effective Aug 1, 2025Covers revenue-based financing with no dollar cap and no entity exemptions — unusually broad. Requires six specified disclosures; clarifies charges are not 'interest' and does not mandate an APR.
Vermont
— H.648 (Act 142) · effective Jul 1, 2027Enacted June 2026; commercial-financing provisions take effect July 1, 2027. Requires a Vermont lending license, standardized APR disclosure, bans confessions of judgment, and restricts automatic debits. Among the strictest state frameworks passed to date.
Methodology & last updated
Last updated: June 30, 2026. Each law in this tracker was verified against primary sources — state legislative bill records and regulator pages — and cross-checked against published client alerts from national financial-services law firms (including Mayer Brown, Manatt, Holland & Knight, Greenberg Traurig, Buchalter, Husch Blackwell, and Venable). We record a state as having a "disclosure law" only when a statute specifically imposing commercial-financing or sales-based-financing disclosure obligations that reach merchant cash advances has been enacted (signed into law), and we note the effective date separately where compliance is phased in.
This landscape changes quickly — bills are introduced, amended, and take effect on a rolling basis, and several additional states had disclosure or APR bills pending as of mid-2026. This page is a general reference, not legal advice. Confirm the current rules with the relevant state regulator or a qualified attorney before signing any commercial-financing agreement.
Spot an error or a new law? This is a living resource and we want it to be right. Email corrections and citations to [email protected] and we'll review and update with attribution.
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