STATE COMMERCIAL FINANCING LAW
New York Commercial Financing Law
Commercial Finance Disclosure Law (S5470-B, 2020) · NY Fin. Serv. Law Art. 8
At a glance
Status: Law enacted
Signed: Dec 23, 2020
Effective: Aug 1, 2023 (mandatory compliance)
Who it covers: Broad — loans, MCA/sales-based, factoring, open-end
Size cap: $2,500,000 or less
Regulator: NY Dept. of Financial Services (DFS)
Type of rules: APR disclosure · Broad coverage
Key requirements
Highest dollar threshold in the country: applies to commercial financing of $2.5M or less.
Requires TILA-style disclosures including APR (estimated APR for sales-based financing), finance charge, and total repayment.
Highly prescriptive DFS regulations govern formatting, signatures, and calculation tolerances.
De minimis exemption: providers making five or fewer NY commercial financing transactions in a 12-month period are exempt, and "provider" reaches brokers as well as funders.
Unusual quirk: banks themselves are exempt, but their subsidiaries and affiliates are not.
Separately, New York’s 2019 amendment to CPLR 3218 bars filing confessions of judgment (COJs) against non-New-York debtors — a landmark change for MCA collections.
What to watch
The CFPB determined in 2023 that the NY law (along with CA, UT, VA) is not preempted by the federal Truth in Lending Act.
New York coverage from Funder Intel
Jan 22, 2025 New York Secures $1 Billion Judgment Against Yellowstone Capital
Nov 15, 2024 Brokers Expo recap; Video interviews with attendees
Apr 24, 2024 Prime Capital Ventures Scheme Grows to Over $120 Million; NACLB website inactive
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 · Utah · Virginia · Georgia · Florida · Connecticut · 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.