- 1The bill covers MCAs and includes an APR requirement.
- 2An earlier $250,000 exemption for sales-based financing was removed.
- 3Brokers and funders would register with the state Banking Department.
Connecticut's commercial financing bill is moving through the state legislature. The bill text is available from the General Assembly.
What the bill covers
Like a handful of other states, Connecticut would apply the rules to merchant cash advances and include an APR requirement.
An earlier version of the bill exempted sales-based financing transactions above $250,000 from the rules. That threshold has been removed, so transactions of all sizes would now be subject to them.
Registration
Both brokers and funders would have to register with the state's Banking Department to offer commercial financing to Connecticut-based merchants.
The measure joins similar state commercial financing disclosure and registration laws that industry participants must track across jurisdictions.
Source reporting: deBanked.
