MCA Laws by State 2026: Merchant Cash Advance Regulations in All 50 States

🏴 California — SB 1235 (California Financing Disclosures)

California was the first state to regulate commercial financing disclosures, including merchant cash advances. Senate Bill 1235 requires commercial finance providers offering products under $500,000 to provide standardized written disclosures before completing a transaction.

What's required under SB 1235:

• Total amount of funds provided
• Total disbursement amount (net proceeds to borrower)
• Finance charge (total cost of financing)
• Estimated APR (annualized percentage rate)
• Total repayment amount
• Monthly payment or periodic payment amounts
• Prepayment policies

Registration: MCA providers must register with the California Department of Financial Protection and Innovation (DFPI) under the California Consumer Financial Protection Law (CCFPL). Failure to register is a violation. Registration is annual.

Reference: Cal. Fin. Code §§ 22800–22805; 10 CCR §§ 900–955

🗽 New York — Part 600 NYCRR (Commercial Finance Disclosure)

New York enacted the most comprehensive MCA disclosure regulation in the country. Part 600 of the New York Codes, Rules and Regulations requires specific disclosures for commercial financing under $2.5 million offered to businesses with fewer than $10 million in annual revenue.

What's required under Part 600:

• Financed amount and disbursement amount
• Finance charge (total dollar cost)
• Annual percentage rate (APR) — computed under the CFPB methodology
• Total repayment amount
• Estimated holdback percentage and payment frequency
• Prepayment disclosure
• Broker compensation disclosure (if applicable)

Registration: Providers must register with the New York Department of Financial Services (DFS). The registration fee is $500 per year. Brokers who arrange commercial financing are also required to register.

Reference: 23 NYCRR Part 600; NY Financial Services Law § 804

🏔 Utah — HB 116 (Commercial Financing Disclosure Act)

Utah's Commercial Financing Disclosure Act (CFDA) requires disclosures for commercial financing products under $1 million, including merchant cash advances. Utah's approach closely follows California's framework.

• Total financing amount
• Finance charge and total repayment amount
• Annual cost of capital (computed per Utah's specific formula)
• Payment schedule and frequency

Registration: No registration requirement (as of June 2026), but disclosures must be made in writing before funding.

Reference: Utah Code § 70C-7-101 et seq.

🌺 Virginia — HB 1027 / SB 1226

Virginia's commercial financing disclosure law covers transactions under $2.5 million. It follows New York's model closely, including the requirement for APR disclosure computed using the CFPB's methodology for revenue-based financing and merchant cash advances.

• Financed amount and disbursement amount
• Finance charge
• APR (annualized, using specific computation methodology)
• Total repayment amount
• Holdback or payment terms

Reference: Va. Code § 6.2-312 et seq.

🍑 Georgia — SB 456

Georgia's commercial financing disclosure law applies to products under $750,000 offered to businesses with under 25 employees. Georgia's framework includes requirements for both funders and brokers, and follows the California/New York disclosure model.

Reference: Ga. Code § 7-7-1 et seq.