Rapid Finance, a market leader in helping small businesses find sustainable and customized financing solutions through a fast and simple application process, announced the availability of its new standalone Software as a Service (SaaS) Regtech module, SMB Disclosure Service, to support business lenders and financing companies in complying with Utah’s new commercial transaction disclosure requirements.
Much like California, Utah has passed its commercial financing disclosure law (SB 183) that became effective this year. However, Utah’s regulations differ in that the law includes annual registration obligations with the Utah Department of Financial Institutions (DFI), in addition to the disclosure requirements. New York will also enact its disclosure law in August of this year after recently announcing its adoption of updated regulations to mandate standardized disclosures for commercial financings below a certain principal amount. Rapid Finance’s team is proactively monitoring additional state regulations in this space and will continue to add new states as similar laws come into effect.
"The trend among state legislatures in regulating commercial financers to provide prescribed disclosures is expected to continue as these laws aim to protect and guide businesses in understanding the terms of financing," said Will Tumulty, CEO, Rapid Finance. "While the process may differ from state to state, the SMB Disclosure Service equips business lenders and commercial financing companies with the ability to quickly and easily produce compliant disclosure statements adhering to each individual state’s requirements and registration obligations as part of the application process."