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FAQ · Process · Updated 2026-06-25

How do state commercial financing disclosure laws (CFDLs) compare across California, New York, Virginia, Utah, and Georgia in 2026?

State CFDLs 2026: California (SB 1235, effective 2022) most comprehensive — APR + total cost + fees. New York (effective 2024) similar scope. Virginia (effective 2022) includes broker registration. Utah (effective 2023) disclosure + registration. Georgia (effective 2024) disclosure focus. All require APR-equivalent disclosure pre-signing. Variations in APR formula, exemption thresholds, broker requirements.

By Keerthana Keti3 min read

Quick answer

State CFDLs 2026: California (SB 1235, effective 2022) most comprehensive — APR + total cost + fees. New York (effective 2024) similar scope. Virginia (effective 2022) includes broker registration. Utah (effective 2023) disclosure + registration. Georgia (effective 2024) disclosure focus. All require APR-equivalent disclosure pre-signing. Variations in APR formula, exemption thresholds, broker requirements.

Full answer

State CFDL overview 2026. State commercial financing disclosure laws (CFDLs) emerged 2018-2026 to provide small-business borrowers with cost disclosure parallel to consumer Truth in Lending Act. 5 states active CFDLs as of 2026: California (2022), New York (2024), Virginia (2022), Utah (2023), Georgia (2024). 10+ additional states considering. Industry transformative.

California SB 1235 2026 detail. (a) Effective December 9, 2022. (b) Covers commercial financing under $500K. (c) Required disclosures: amount financed, APR (annual percentage rate), finance charge, payment schedule, prepayment terms, broker compensation. (d) APR formula: Federal TILA-equivalent. (e) Enforced by DFPI (Department of Financial Protection and Innovation). (f) Most comprehensive state CFDL.

New York CFDL 2026 detail. (a) Effective August 1, 2024. (b) Covers commercial financing under $2.5M (highest threshold). (c) Required disclosures: amount financed, APR, finance charge, payment schedule, prepayment terms, broker compensation. (d) APR formula: TILA-equivalent. (e) Enforced by DFS (Department of Financial Services). (f) Broad coverage scope.

Virginia CFDL 2026 detail. (a) Effective July 1, 2022. (b) Covers commercial financing under $500K. (c) Required disclosures: amount, APR, finance charge, payment, prepayment, broker compensation. (d) APR formula: TILA-equivalent. (e) Broker registration requirements. (f) Enforced by SCC (State Corporation Commission). (g) Comprehensive broker oversight.

Utah CFDL 2026 detail. (a) Effective January 1, 2023. (b) Covers commercial financing under $1M. (c) Required disclosures: amount, APR, finance charge, payment, prepayment. (d) APR formula: TILA-equivalent. (e) Broker registration requirements. (f) Enforced by Department of Financial Institutions. (g) Disclosure + registration focus.

Georgia CFDL 2026 detail. (a) Effective January 1, 2024. (b) Covers commercial financing under $500K. (c) Required disclosures: amount, APR, finance charge, payment, prepayment. (d) APR formula: TILA-equivalent. (e) Enforced by Department of Banking and Finance. (f) Newest CFDL.

APR formula comparison 2026. (a) All states use TILA-equivalent APR formula. (b) MCA APR calculation requires payback period estimation (variable for revenue-based). (c) Standard approach: total cost / amount / time. (d) Variable repayment creates calculation complexity. (e) Funders use averaging assumptions.

Coverage threshold comparison 2026. (a) NY: under $2.5M (broadest). (b) UT: under $1M. (c) CA, VA, GA: under $500K. (d) Larger commercial financings often exempt. (e) Small business protection focus.

Broker registration comparison 2026. (a) VA: broker registration required. (b) UT: broker registration required. (c) CA: broker licensing under CFL (California Financing Law). (d) NY: broker disclosure required not registration. (e) GA: no broker registration. (f) Broker oversight varies.

Disclosure timing 2026. (a) All states require disclosure before signing. (b) Some require disclosure with offer. (c) Some require disclosure at funding. (d) Standardized timing emerging. (e) Pre-signing disclosure standard.

Disclosure format 2026. (a) Standardized disclosure form preferred. (b) Plain language requirements. (c) Bold or prominent display required. (d) Electronic + paper formats. (e) Format standardization improving.

Exemption analysis 2026. (a) Loans secured by real property typically exempt. (b) Loans to financial institutions exempt. (c) Loans to governmental entities exempt. (d) Specific commercial categories exempt. (e) Exemptions vary by state.

MCA-specific provisions 2026. (a) Some CFDLs explicitly include MCAs. (b) Some treat MCAs as commercial financing generally. (c) Reconciliation provisions accommodated. (d) Variable payback period disclosed with assumptions. (e) MCA inclusion standard.

Enforcement comparison 2026. (a) CA DFPI: most active enforcement. (b) NY DFS: significant enforcement (2024+). (c) VA SCC: registration + disclosure enforcement. (d) UT DFI: enforcement ramping. (e) GA DBF: enforcement starting (2024+).

Penalties comparison 2026. (a) CA: civil penalties + restitution + injunctive. (b) NY: civil penalties + restitution + injunctive. (c) VA: civil penalties + registration revocation. (d) UT: civil penalties + registration sanctions. (e) GA: civil penalties + injunctive.

Private right of action 2026. (a) CA: private right of action under UCL. (b) NY: private right of action under GBL 349. (c) VA: limited private right of action. (d) UT: limited private right of action. (e) GA: limited private right of action.

Class action coordination 2026. (a) CA + NY: class action coordination common. (b) Multi-state class actions emerging. (c) State CFDL violations basis for class action. (d) Plaintiff bar specializing in CFDL. (e) Material litigation exposure.

Compliance practices 2026. (a) Multi-state compliance complex. (b) Most funders implement comprehensive disclosure systems. (c) State-specific forms required. (d) Software solutions emerging. (e) Compliance cost material.

Future state CFDL outlook 2026-2027. (a) 10+ states considering CFDLs (TX, FL, IL, PA, NJ, CT, MA, OH, MI, NC). (b) Federal CFDL legislation considered. (c) Industry preemption arguments. (d) Continued state expansion. (e) Federal harmonization possible.

Bottom line. MCA disclosure law comparison by state 2026 — overview (state CFDLs emerged 2018-2026 small-business cost disclosure parallel TILA + 5 active CA 2022/NY 2024/VA 2022/UT 2023/GA 2024 + 10+ considering + transformative), CA SB 1235 (December 9 2022 + under $500K + amount/APR/finance charge/payment/prepayment/broker comp + TILA APR + DFPI + most comprehensive), NY (August 1 2024 + under $2.5M highest + amount/APR/finance/payment/prepayment/broker + TILA + DFS + broad scope), VA (July 1 2022 + under $500K + amount/APR/finance/payment/prepayment/broker + TILA + broker registration + SCC + comprehensive broker), UT (January 1 2023 + under $1M + amount/APR/finance/payment/prepayment + TILA + broker registration + DFI + disclosure + registration), GA (January 1 2024 + under $500K + amount/APR/finance/payment/prepayment + TILA + DBF + newest), APR formula (all TILA-equivalent + MCA requires payback estimation variable revenue-based + total cost/amount/time + variable repayment complexity + averaging assumptions), coverage thresholds (NY $2.5M broadest + UT $1M + CA/VA/GA $500K + larger commercial exempt + small business focus), broker registration (VA required + UT required + CA CFL licensing + NY disclosure not registration + GA no registration + varies), disclosure timing (all before signing + some with offer + some at funding + standardized emerging + pre-signing standard), disclosure format (standardized preferred + plain language + bold/prominent + electronic/paper + standardization improving), exemptions (real property + financial institutions + governmental + specific commercial + varies), MCA-specific (some explicitly include + some treat as commercial generally + reconciliation accommodated + variable payback disclosed with assumptions + standard inclusion), enforcement (CA DFPI most active + NY DFS significant 2024+ + VA SCC registration/disclosure + UT DFI ramping + GA DBF starting 2024+), penalties (CA civil/restitution/injunctive + NY civil/restitution/injunctive + VA civil/registration revocation + UT civil/registration sanctions + GA civil/injunctive), private right (CA under UCL + NY under GBL 349 + VA limited + UT limited + GA limited), class action coordination (CA + NY common + multi-state emerging + violations basis + plaintiff bar specializing + material exposure), compliance practices (multi-state complex + comprehensive disclosure systems + state-specific forms + software solutions + cost material), future outlook 2026-2027 (10+ states TX/FL/IL/PA/NJ/CT/MA/OH/MI/NC + federal legislation considered + preemption arguments + continued expansion + federal harmonization possible). State CFDLs transforming MCA disclosure landscape with CA/NY/VA/UT/GA leading + 10+ states considering + comprehensive APR/cost/broker disclosure required pre-signing — multi-state compliance complex + enforcement intensifying + private right of action material; merchants benefiting from improved disclosure + class action coordination + state enforcement pathways.

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Methodology. Fundnode is an independent funding-platform that scores merchants against our 100-funder database. We earn referral fees from funders when merchants apply via Fundnode. Editorial rankings and answers are independent of fee structure. Updated 2026-06-25.