MCA Borrower Protection Laws by State
A plain-language guide to the state laws that regulate merchant cash advances and the disclosures you're entitled to.
If stacked merchant cash advances are draining your cash flow, state-level MCA disclosure laws are your best tool for pushing back. Across the country, legislatures are forcing MCA providers, factoring companies, and online lenders to spell out funded amount, total repayment, fees, payment cadence, and APR-style cost metrics in plain language — before you sign. This hub tracks the ten states that have led the way, summarizes what each law requires, and shows you how to use those disclosures as leverage when you renegotiate, consolidate, or challenge an MCA contract.
Currently tracked state laws
California SB 1235
California SB 1235 is the nation’s first commercial financing disclosure law, forcing MCA providers, factoring companies, and online lenders to show the true cost of financing before a small business signs.
Connecticut SB 1032
Connecticut SB 1032 requires MCA providers, factoring companies, and commercial lenders to disclose key terms, costs, and repayment details before entering any commercial financing agreement of $250,000 or less.
Florida Part XIII, Chapter 559
Florida’s Commercial Financing Disclosure Law (Part XIII, Chapter 559) requires MCA providers and commercial lenders to give Florida small businesses clear, standardized disclosures before a contract is signed.
Georgia SB 90
Georgia SB 90 establishes new disclosure standards for MCA providers and commercial lenders, requiring clear repayment, fee, and APR-style information before a small business signs.
Kansas SB 345
Kansas SB 345 is part of the national wave of commercial financing disclosure laws aimed at bringing transparency to merchant cash advances and other non-bank business financing.
Missouri CFDL
The Missouri Commercial Financing Disclosure Law (CFDL) is designed to bring transparency to merchant cash advances and other non-bank commercial financing offered to Missouri small businesses.
New York S5470-B
New York S5470-B is a landmark commercial finance disclosure law requiring MCA providers, factoring companies, and online lenders to give small business borrowers APR-style, consumer-grade disclosures before a contract is signed.
Texas HB 700
Texas HB 700 forces MCA providers to give Texas small businesses plain-language disclosures of repayment amounts, fees, and APR-style cost metrics before any commercial financing contract is signed.
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.
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.
HB 700 vs SB 1235
Side-by-side comparison of Texas's HB 700 and California's SB 1235.
Read the comparison →Not sure which law applies to your MCA?
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