Rapid Finance, a leading small business banking platform specializing in providing customized financing solutions, announced the availability of its SMB Disclosure Service, a standalone Software-as-a-Service (SaaS) Regtech Module, to assist business funders and financing companies comply with Connecticut’s commercial disclosure requirements which took effect on July 1, 2024.
Connecticut’s commercial financing disclosure law applies to financing amounts of $250,000 or less, requiring funders involved in sales-based financing to provide disclosures to businesses seeking working capital. Also, any funders or financing companies in the state must register with the Connecticut Department of Banking starting October 1, 2024.
Connecticut’s adoption of financing disclosure requirements is part of a growing trend of state-specific regulatory laws that prioritize transparency, equitable business practices and borrower safeguards. Other states such as New York, California, Utah, Florida, Georgia, Kansas and Virginia have also enacted similar commercial financing disclosure laws that aim to standardize disclosures for commercial financing below a certain principal financing amount.
“More states are beginning to adopt laws that help small business applicants make better informed decisions during the loan application process,” said Will Tumlty, CEO at Rapid Finance. “However, we recognize that remaining up to date on state-specific commercial financing regulations can be daunting for SMB lenders and finance companies. Rapid’s SMB Disclosure Service simplifies this process and is tailored to help lenders ensure compliance while navigating an ever-changing regulatory landscape.”
