Connecticut Commercial Financing Law

At a glance

• Status: Law enacted

• Signed: Jun 28, 2023

• Effective: Jul 1, 2024 (disclosures) · registration by Oct 1, 2024

• Who it covers: Sales-based financing / MCA only

• Size cap: $250,000 or less

• Regulator: CT Dept. of Banking

Type of rules: APR disclosure · Registration · MCA / sales-based financing only

Key requirements

• Providers of sales-based financing must register annually with the Department of Banking.

• Disclosures include estimated APR — one of only three states (with CA and NY) to require an APR-style figure.

• Contract restrictions took effect Jul 1, 2024, including limits on waivers of notice and judicial hearing rights.

• Unique reciprocity provision: the Banking Commissioner may accept another state’s disclosure format if it meets or exceeds Connecticut’s.

• De minimis exemption: entities making five or fewer commercial financing transactions in a 12-month period are exempt, along with banks, leases, and purchase money obligations.

What to watch

Civil penalties can reach $100,000 per violation — the steepest in any state disclosure law.

Compare every state

Open the Commercial Financing Regulation Tracker map to compare all state laws side by side.

Search the Commercial Registration Database (members) to check who is registered.

Other states with laws: California · New York · Utah · Virginia · Georgia · Florida · Kansas · Missouri · Louisiana · Texas · Vermont · North Dakota

States with pending bills: New Jersey · Illinois · Maryland · North Carolina · Pennsylvania

Last verified October 2026. Compiled and verified by Funder Intel for general industry information. This is not legal advice. Laws change often, so check the statute and a qualified attorney before making compliance decisions.