Eleven states now have enacted disclosure requirements affecting covered commercial or revenue-based financing transactions. This tracker shows where the rules apply, which states require broker registration, the disclosure model used, and the 2026 deadlines brokers and business owners should know.
The rules are not uniform. Some states require an APR-style metric, others use a total-cost model, several regulate broker conduct, and four states in this tracker require brokers to register for covered activity.
11: California, Connecticut, Florida, Georgia, Kansas, Louisiana, Missouri, New York, Texas, Utah and Virginia.
Texas, Virginia, Connecticut and Missouri have broker-registration requirements for covered activity described here. Utah registers covered providers.
California and New York are the clearest APR-style regimes in this tracker. Other states generally use total-cost or sales-based financing disclosure models.
Texas OCCC registration. Applications begin through NMLS September 1, 2026, and covered providers and brokers must register by December 31, 2026.
Act 198 added a written disclosure requirement for revenue-based financing, effective August 1, 2025. It belongs in a current 2026 state tracker.
Regulatory answers age fast. These are the changes that landed in the last twelve months, each linked to its primary source.
California now expressly restricts deceptive use of “interest” or “rate” and requires APR to accompany certain pricing statements after a specific offer is extended.
California Legislature →OCCC lists the commercial sales-based financing rules as effective July 9, 2026, with registration required by December 31, 2026.
Texas OCCC rules →OCCC says businesses that need a Commercial Sales-Based Finance registration can begin applying through NMLS on September 1.
Texas registration page →Louisiana’s revenue-based financing disclosure statute took effect August 1, 2025 and is now included as the 11th state in this 2026 tracker.
Louisiana Act text →Use the filters to isolate broker-registration states or disclosure models. The table is a practical summary; the source links and full statutes control.
| State | Law / status | Core disclosure model | Transaction scope | Registration | Primary source |
|---|---|---|---|---|---|
| California APR-style |
CFDL / Financial Code Div. 9.5; SB 362 effective Jan. 1, 2026 | Amount provided, total dollar cost, term, payments, prepayment policy and annualized rate. SB 362 adds restrictions around misleading “rate”/“interest” language. | Recipients presented covered offers of ≤ $500K, subject to exemptions. | Disclosure statute is provider-focused; separate California Financing Law licensing questions can apply depending on activity. | CA Financial Code |
| New York APR-style |
Commercial Finance Disclosure Law; 23 NYCRR Part 600 | APR / estimated APR methodology plus itemized commercial financing disclosures. | Covered commercial financing transactions up to the statutory threshold, subject to exemptions. | No broker registration; NYDFS enforces. The NY Attorney General's Yellowstone case ($1.065B judgment, Jan. 2025) is the largest MCA enforcement action to date. | NY DFS |
| Texas Broker registration |
HB 700 / Texas Finance Code Ch. 398; rules effective July 9, 2026 | Total financing, disbursement, finance charge, total repayment, payment mechanics, fees and other required terms. Texas does not use California’s APR model for this regime. | Covered commercial sales-based financing under Chapter 398; transaction-specific exemptions apply. | Providers and brokers. OCCC registration through NMLS begins Sept. 1, 2026; required by Dec. 31, 2026. Civil penalties up to $10,000 per violation. | Texas OCCC |
| Virginia Broker registration |
Va. Code § 6.2-2228 et seq.; effective 2022 | Sales-based financing disclosures include amount, finance charge, total repayment, estimated payments and other costs. | Sales-based financing to Virginia recipients; chapter excludes a single transaction over $500K and other exempt activity. | Providers and brokers register with the State Corporation Commission. | Virginia Code |
| Connecticut Broker registration |
PA 23-201; disclosures effective July 1, 2024; registration effective Oct. 1, 2024 | Commercial financing / sales-based financing disclosure requirements under the Connecticut framework. | Covered transactions and thresholds are defined by Connecticut law and exemptions. | Providers and brokers have separate registration categories with the Department of Banking. | CT DOB |
| Missouri Broker registration |
RSMo § 427.300 et seq.; operative framework reflected in 2025 source material | Total-cost disclosure model for covered commercial financing activity. | Covered commercial financing transactions, subject to statutory definitions and exemptions. | Brokers register; source draft also notes a $10,000 surety bond requirement. | Missouri statute |
| Utah Provider registration |
Utah Code Title 7, Chapter 27; effective Jan. 1, 2023 | Commercial financing disclosures under Utah’s Registration and Disclosure Act. | Covered commercial financing of $1M or less, subject to exemptions. | Covered commercial financing providers register through Utah DFI / NMLS. | Utah DFI |
| Florida Total-cost model |
Fla. Stat. §§ 559.961–559.9615; compliance since 2024 | Commercial financing disclosures plus broker conduct restrictions, including advance-fee and misrepresentation provisions. | Covered business-purpose commercial financing transactions; exemptions and provider-volume rules apply. | No separate broker registration is described in this disclosure statute. | Florida Legislature |
| Georgia Total-cost model |
O.C.G.A. § 10-1-393.18; effective 2024 | Required commercial financing transaction disclosures; broker restrictions are included in the statutory framework. | Covered commercial financing, subject to Georgia definitions and exemptions. | No broker registration is described in the source material used for this tracker. | Georgia enrolled bill |
| Kansas Total-cost model |
Commercial Financing Disclosure Act, SB 345; effective July 1, 2024 | Funds provided/disbursed, total payments, payment mechanics and prepayment disclosures; broker conduct guardrails. | Covered commercial financing transactions; exemptions in the Act apply. | No broker registration requirement in SB 345; brokers are subject to conduct restrictions. | Kansas Legislature |
| Louisiana Added |
Act 198 (HB 470), R.S. 9:3137.10; effective Aug. 1, 2025 | Revenue-based financing must include a written disclosure at or before consummation: amount provided, amount disbursed when different, total amount paid, total dollar cost, payment mechanics and prepayment information. | Revenue-based financing transaction as defined by R.S. 9:3137.10. The enacted section does not state a dollar threshold. | No registration requirement appears in R.S. 9:3137.10 itself. | Louisiana Act 198 |
Tracker note: “Registration” is not synonymous with every license that could apply to a financing business. This table focuses on registration obligations tied to the commercial-financing / sales-based-financing regimes summarized here.
These are the most useful places to go beyond the table because they capture three different regulatory patterns: registration, APR-centered disclosure, and a newer revenue-based financing disclosure statute.
Texas is one of the most consequential 2026 operational changes for sales-based financing businesses because covered providers and brokers must register with OCCC.
California’s 2026 change is best described precisely: a provider may not use “interest” or “rate” deceptively, and after a specific offer is extended, certain pricing statements must be accompanied by APR.
Louisiana’s statute specifically addresses revenue-based financing and requires one written disclosure at or before consummation of the transaction.
New York pairs APR-style disclosure rules (23 NYCRR Part 600) with the most aggressive enforcement in the country: in January 2025 the New York Attorney General obtained a $1.065 billion judgment against Yellowstone Capital, including more than $534 million in merchant debts cancelled.
This is a practical checklist, not a substitute for counsel. The point is to identify the highest-risk operational questions before a file reaches the offer stage.
Track where the recipient is located and which products you are brokering. State definitions and triggers differ, and the broker’s office location is not the only fact that matters.
Pay particular attention to Texas, Virginia, Connecticut and Missouri. Texas OCCC opens CSBF registration applications on September 1, 2026.
For California-covered offers, do not treat a factor rate as if it were a stand-alone substitute for the required annualized cost information. Review pages, emails, scripts and offer communications.
A single generic packet is not a compliance strategy. Product type, recipient location, transaction size and provider role can change the disclosure requirements.
Elite Funders works with ISO and referral partners across multiple commercial financing products. The partner program gives brokers one place to submit opportunities, track activity and work through product- and state-specific requirements with the funding desk.
Disclosure laws are designed to make cost and payment terms easier to compare. If you receive multiple financing offers, compare the amount you actually receive, total payback or total dollar cost, payment amount and frequency, prepayment terms, and any annualized cost metric the state requires.
Use the factor-rate-to-APR calculator to understand how a factor rate translates into an annualized cost estimate, or model payment and payback scenarios with the MCA calculator.
Not yet effective, but close enough to plan for. These stay off the 11-state count until they're live.
Vermont approved H.648 on June 16, 2026. The sections concerning commercial financing are scheduled to take effect July 1, 2027, so Vermont belongs on the watch list rather than in the current 11-state count.
The law is already in effect, but the operational registration window is still unfolding: OCCC’s current page says NMLS applications begin September 1 and registration is required by year-end.
Short, self-contained answers are useful to readers and make the page easier for search and AI systems to extract accurately.
Direct statute and regulator links make it easier to verify the summary and keep the tracker current when rules change.
Current registration instructions, NMLS timing and regulator guidance.
occc.texas.gov/…/commercial-sales-based-finance/Lists CSBF rules effective July 9, 2026 and registration due Dec. 31, 2026.
occc.texas.gov/publications/legal/rules/Official bill text covering deceptive “interest”/“rate” usage and APR re-disclosure circumstances.
leginfo.legislature.ca.gov — SB 362Commercial Financing Disclosures statutory text.
California Financial CodeEnrolled act adding R.S. 9:3137.10 for revenue-based financing transactions.
Louisiana Legislature — enrolled HB 470Definitions, broker/provider registration, exemptions and disclosure requirements.
Virginia Code Chapter 22.1Department of Banking registration information for commercial financing providers and brokers.
Connecticut DOBNYDFS regulatory activity and 23 NYCRR Part 600 materials.
New York DFSDFI registration and disclosure resources for Title 7, Chapter 27.
Utah DFIOfficial bill page for the Commercial Financing Disclosure Act.
Kansas LegislatureOfficial Florida statutes, Part XIII of Chapter 559.
Florida LegislatureJanuary 22, 2025 press release: $1.065B judgment, $534M+ merchant debts cancelled.
ag.ny.gov — Yellowstone announcementApproved June 16, 2026; commercial-financing sections scheduled for July 1, 2027.
Vermont Legislature