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UTAH • MCA LAW

Utah SB 183

Utah SB 183 sets new standards for commercial financing providers, requiring MCA companies, factoring firms, and certain online lenders to deliver clear, standardized disclosures before a small business signs.

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State-specific guidanceDisclosure requirementsActionable review
EFFECTIVE
Effective per Utah SB 183 (2023 session)
COVERS
MCA companies, factoring firms, and certain online lenders offering commercial financing in Utah. Traditional banks and other exempt institutions generally fall outside the law.
ENFORCED BY
Utah Department of Financial Institutions.
KEY PROVISIONS

What SB 183 requires

Total repayment amount

Providers must disclose the full amount a Utah business will repay across the life of the financing.

All fees and charges

Every fee and charge associated with the financing must be itemized so the borrower can see the total price of capital.

Payment frequency and method

The cadence and method of collection — daily, weekly, or percentage-of-sales — must be disclosed upfront.

Estimated annualized cost

Utah requires an estimated annualized cost of financing so owners can compare offers on a standardized basis.

Prepayment penalties

Any prepayment penalties or non-discounted early-payoff provisions must be disclosed in advance.

PENALTIES

What happens if a provider doesn't comply?

Providers that fail to register or deliver the required disclosures are subject to state regulatory action. Non-compliance can strengthen borrower challenges to unfair or misleading MCA contracts.

IF YOU'VE BEEN AFFECTED

What borrowers can do now

  1. Locate the SB 183 disclosure you received before signing any Utah MCA or factoring contract.
  2. Compare the disclosed annualized cost to your actual daily or weekly cash outflows.
  3. Document any fees or prepayment terms that do not match the disclosure.
  4. Contact Debt Consultants Group for a complimentary Utah MCA contract review.

Citations & sources

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