Louisiana Commercial Financing Law

At a glance

• Status: Law enacted

• Signed: Jun 8, 2025

• Effective: Aug 1, 2025

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

• Size cap: No dollar cap

• Regulator: No designated regulator (statutory duty on providers)

Type of rules: MCA / sales-based financing only

Key requirements

• Applies only to revenue-based financing — agreements where payments rise and fall with the business’s sales, revenue, or income.

• Statute expressly states that amounts charged in a revenue-based financing transaction are not "interest" — helpful clarity for the industry on recharacterization risk.

• Six required disclosures at or before consummation, including total funds provided, funds disbursed, total payments, and total dollar cost — no APR.

• One of a kind: no entity exemptions, no dollar-amount cap, and no de minimis exemption.

What to watch

No registration requirement and no agency rulemaking authority — providers design their own compliant disclosure.

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Other states with laws: California · New York · Utah · Virginia · Georgia · Florida · Connecticut · Kansas · Missouri · 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.