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At least 11 states now require funders to give small businesses written cost disclosures. Where they apply, what they ask for, and what they do not do.
Consumer loans have had standard cost disclosures for decades. Small-business financing mostly did not. Starting with California and New York, a growing list of states now requires funders to give you a written summary of the terms before you sign. If you took an advance in one of them, there may be a form you can compare with your contract.
These laws are called commercial financing disclosure laws. They cover products including merchant cash advances, sales-based financing and accounts receivable purchases. They tell the funder what it must show you. In general, that includes items such as the amount of funds provided, the total cost, the estimated term, the payment amounts and how prepayment works, though each state sets its own list.
We could confirm these 11 states as enacted when this guide was written (October 2026). Dates and size limits come from regulator pages and law-firm summaries, and the details change. Check the statute or your state regulator.
| State | Law | In force | Size and notes |
|---|---|---|---|
| California | SB 1235 (2018); regulations in 10 CCR | Regulations effective Dec. 9, 2022 | Financings of $500,000 or less. Estimated APR is disclosed. SB 362 (in force Jan. 1, 2026) adds rules on how pricing is expressed. |
| Connecticut | Public Act 23-201 (SB 1032) | Disclosures from July 1, 2024 | Sales-based financing up to $250,000. No APR required. Providers register with the state. |
| Florida | Commercial Financing Disclosure Law, Fla. Stat. 559.961 et seq. (ch. 2023-290) | Transactions on or after Jan. 1, 2024 | $500,000 or less. Covers accounts receivable purchases. |
| Georgia | SB 90; O.C.G.A. 10-1-393.18 et seq. | Jan. 1, 2024 | Up to $500,000. Covers commercial loans, open-end credit and accounts receivable purchases. No APR required. |
| Kansas | SB 345 (2024) | July 1, 2024 | Up to $500,000. No APR required. Enforced by the Attorney General. |
| Louisiana | HB 470 (2025) | Aug. 1, 2025 | No dollar cap. No registration. No APR required. |
| Missouri | SB 1359 (2024); RSMo 427.300 | Feb. 28, 2025 | Up to $500,000. Brokers register and post a $10,000 surety bond. Disclosures cover prepayment costs or discounts. |
| New York | Financial Services Law Art. 8; 23 NYCRR Part 600 | Compliance required Aug. 1, 2023 | Transactions up to $2.5 million. Sales-based financing is covered. APR disclosure rules apply. |
| Texas | HB 700 (2025); Finance Code ch. 398 | Disclosures from Sept. 1, 2025 | No minimum-size exemption. Providers and brokers must register with the OCCC by Dec. 31, 2026. Penalties up to $10,000 per violation. |
| Utah | Commercial Financing Registration and Disclosure Act, Utah Code Title 7, ch. 27 (SB 183) | Jan. 1, 2023 | Financings over $1 million are exempt. Covers accounts receivable purchase transactions. Providers register with the Department of Financial Institutions. |
| Virginia | Va. Code 6.2-2228 et seq. (sales-based financing providers; 2022 Acts ch. 516) | 2022 | Sales-based financing. Providers register with the State Corporation Commission. Check the statute for size exemptions. |
Other states have proposed laws; for example, a New Jersey bill was still pending when this was written. Only laws we could confirm as enacted are listed. Which state's law applies can depend on where your business is located and where the funder operates, so ask a lawyer if it matters.
If your state has a law like this, the funder's summary should let you answer a few plain questions without reading 30 pages:
Where an estimated APR is required, you can also see the cost as a yearly rate, which helps with comparing it against a loan. See Factor rate vs. APR.
General information, not legal advice. Laws are amended often. Confirm the current text with your state regulator or a lawyer.
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