Total repayment amount
The full amount a Virginia business will repay must be clearly disclosed before the contract is signed.
VIRGINIA • MCA LAW
Virginia HB 1027
Virginia HB 1027 requires MCA providers and other commercial financers to deliver standardized disclosures — repayment amounts, fees, and payment terms — to small businesses before any agreement is finalized.
State-specific guidanceDisclosure requirementsActionable review
EFFECTIVE
Effective per Virginia HB 1027
COVERS
MCA providers and non-bank commercial financers offering covered financing to Virginia small businesses. Traditional banks and certain exempt lenders are not covered.
ENFORCED BY
Virginia State Corporation Commission, Bureau of Financial Institutions.
KEY PROVISIONS
What HB 1027 requires
Breakdown of fees and costs
All fees and costs must be itemized so borrowers can see every dollar going to the provider.
Payment frequency and method
Whether collection is daily, weekly, or a percentage of sales, the cadence and method must be disclosed upfront.
Prepayment penalties
Any applicable prepayment penalties or non-discounted early-payoff terms must be spelled out clearly.
PENALTIES
What happens if a provider doesn't comply?
Providers that fail to comply face state regulatory action and the possibility of borrower challenges to the contract’s enforceability.
IF YOU'VE BEEN AFFECTED
What borrowers can do now
- Request the HB 1027 disclosure you should have received before signing any Virginia MCA or factoring contract.
- Verify that total repayment, fees, cadence, and prepayment terms all match the disclosure.
- Document any hidden fees or undisclosed daily debit provisions.
- Contact Debt Consultants Group for a complimentary Virginia MCA contract review.
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