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Tuesday, October 13
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Regulatory
State disclosure laws, federal rules and the enforcement docket.
CFPB's fair lending report restates MCA exclusion from Section 1071
The bureau's annual Fair Lending Report repeats that MCAs fall outside the revised small business data rule, which also narrows the small business definition to $1M in revenue.
True Food Kitchen's bankruptcy lists a $2.2M MCA balance owed to Parafin
The chain's Chapter 11 filings show the DoorDash Capital advance, plus MCA-type debts to Rewards Network and InKind, as debtors move to reject Parafin's contract.
SEC sues 5G Funding and its owner over alleged MCA investment fraud
The complaint says the firm raised $4.5M from 23 investors, collected in full on about 30 of 184 advances, and that the owner spent funds on gambling, cars and a home down payment.
SBA sets a 24-month wait before refinancing a converted MCA
Updated SBA operating procedures effective October 1 bar refinancing of active sales-based repayment agreements and require a converted MCA to amortize for at least two years first.
NYC promotes Future Fund revenue-based loans without disclosing an APR
The city's small business agency touts loans from $25,000 with payments tied to monthly revenue, but marketing cites an interest rate and a 3% origination fee rather than an APR.
SEC case against an MCA Ponzi scheme also targets two unregistered brokers
The complaint alleges two people solicited investors for a $47M scheme and earned 5% to 25% commissions without registering as broker-dealers, a warning for syndication marketing.
NY bankruptcy court recharacterizes 19 MCAs as loans in Kossoff PLLC case
A 36-page decision in the Kossoff PLLC Chapter 7 case treats $10.8 million in advances made from 2016 to 2020 as loans, a step toward the trustee's usury claim.
TCPA lawsuits on pace to rise 30% in 2026, WebRecon data shows
Through May, suits under the Telephone Consumer Protection Act were tracking 30% above 2025 nationwide, while CFPB complaints were on pace for a 34.8% increase.
American Factoring Association head says MCA fight moves federal
After new merchant cash advance laws in Texas and Vermont, AFA President Cole Harmonson posted that the next step is to take the fight against MCAs to the federal level.
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