S5470 B — New York — The MCA Loan Disclosure Law Reshaping Small Business Financing

August 27, 2025
Ben Wilson

S5470-B is New York’s groundbreaking entry into the growing wave of MCA Loan Disclosure Laws designed to protect small businesses from the hidden costs of Merchant Cash Advances. For years, MCAs have promised fast funding but often left business owners struggling with confusing repayment structures, stacked contracts, and relentless daily withdrawals. By requiring lenders to clearly disclose repayment amounts, fees, and annualized costs before agreements are signed, S5470-B brings much-needed transparency to commercial financing and gives small businesses in New York the ability to make informed financial decisions.

Recognizing this growing problem, several states have stepped in with new laws designed to bring transparency and fairness to commercial financing. In Texas, that effort has taken shape as HB 700, which forces MCA providers to clearly disclose costs and repayment terms so business owners know exactly what they’re signing up for.

For anyone struggling with MCA debt in Texas, understanding HB 700 is not just about compliance — it’s about knowing your rights, protections, and leverage points when dealing with lenders.

What Is New York S5470-B?

S5470-B, signed into law in New York, requires MCA providers and other commercial financers to provide clear, standardized disclosures to borrowers before contracts are finalized.

The law applies to:

Merchant Cash Advance companies
Factoring companies
Online lenders
Certain non-bank financing providers

By enforcing consistent disclosure rules, New York ensures small businesses can better compare financing offers and avoid getting trapped in predatory contracts.

Key Requirements of S5470-B

The law introduces detailed requirements similar to consumer credit protections. Under S5470-B, MCA providers must disclose:

Total repayment amounts
Fees and costs associated with financing
Estimated annual percentage rate (APR) or cost of capital
Payment schedule and method of collection
Any potential prepayment penalties

These disclosures are intended to prevent small businesses from being misled by vague or confusing terms.

Why S5470-B Matters

Before this law, many MCA contracts in New York left borrowers in the dark. Business owners often discovered too late that they were repaying far more than expected, sometimes through multiple daily withdrawals.

With S5470-B, New York joins California and Texas in pushing back against predatory lending by demanding transparency. This MCA Loan Disclosure Law helps business owners:

Compare financing options more easily
Avoid stacked or overlapping contracts
Understand the real cost of borrowing before committing

How S5470-B Compares to Other MCA Loan Disclosure Laws

State	Law	Key Feature
California	SB 1235	First state law requiring standardized MCA disclosures
Texas	HB 700	Plain-language repayment terms and fee breakdowns
New York	S5470-B	APR-style disclosures + detailed repayment transparency

New York’s law stands out for requiring disclosures that mirror consumer-style protections, giving business owners an apples-to-apples way to evaluate commercial financing offers.

The Bigger Picture

S5470-B is part of a national movement. As more states pass MCA Loan Disclosure Laws, lenders are being forced to operate with greater honesty and accountability. For business owners, this means clearer contracts, fewer surprises, and stronger leverage when negotiating financing.

With S5470-B, New York joins California and Texas in pushing back against predatory lending by demanding transparency. This MCA Loan Disclosure Law helps business owners:

Compare financing options more easily
Avoid stacked or overlapping contracts
Understand the real cost of borrowing before committing

Bottom Line:

New York S5470-B raises the bar for MCA Loan Disclosure Laws.
It requires lenders to provide transparent, standardized disclosures.
Together with California and Texas, New York is shaping the future of MCA regulation nationwide.

S5470-B FAQ

What is New York S5470-B?

New York S5470-B is a state law that requires Merchant Cash Advance providers and other commercial lenders to provide standardized, transparent disclosures. It’s part of a growing trend of MCA Loan Disclosure Laws that protect small businesses by showing the true cost of financing upfront.

Who does S5470-B apply to?

The law applies to MCA companies, factoring providers, online lenders, and certain non-bank financing institutions that operate in New York and issue contracts to small businesses.

What disclosures are required under S5470-B?

Lenders must disclose total repayment amounts, fees, estimated APR or cost of capital, payment frequency, collection method, and any prepayment penalties. These details allow borrowers to compare offers more easily.

How does S5470-B help small business owners?

By enforcing transparency, S5470-B ensures small businesses understand exactly what they’re signing. This reduces the risk of getting locked into high-cost or stacked MCA contracts that drain cash flow.

What happens if a provider doesn’t follow HB 700?

Non-compliant providers face civil penalties and enforcement actions by Texas regulators. For borrowers, this may provide leverage in disputing or renegotiating contracts.

How does S5470-B compare to other MCA Loan Disclosure Laws?

California SB 1235 was the first to mandate standardized MCA disclosures, while Texas HB 700 requires plain-language repayment summaries. New York’s S5470-B adds APR-style cost comparisons, making it one of the strongest protections for small business borrowers.

When did S5470-B take effect?

S5470-B was passed in New York to increase oversight of MCA providers and went into effect after its signing, with compliance required for all new contracts issued thereafter.

Does S5470-B eliminate the risks of MCAs?

Not entirely. While S5470-B makes terms clearer, MCAs can still be expensive and risky. The law helps business owners make informed decisions, but it’s important to carefully review contracts and consider alternatives.

Debt Consultants Group Insight

We monitor state-by-state MCA Loan Disclosure Laws like New York’s S5470-B to protect borrowers from predatory terms and support them in negotiating fair settlements. If you’ve been offered an MCA in New York — or you’re struggling with stacked contracts — understanding these new protections is the first step toward financial relief.