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STATE COMMERCIAL FINANCING LAW

 

Vermont Commercial Financing Law

 

H.648 (2026)

 

At a glance

 

  • Status: Law enacted

  • Signed: Jun 16, 2026

  • Effective: Jul 1, 2027

  • Who it covers: Sales-based financing AND factoring / receivables purchases

  • Size cap: Transactions of $1M+ (non-consumer) exempt

  • Regulator: VT Dept. of Financial Regulation

Type of rules: APR disclosure · Licensing / rate cap · MCA / sales-based financing only · Broker rules

 

Key requirements

 

  • The heaviest state framework yet: providers must obtain a Vermont lender license and brokers/solicitors a loan solicitation license — full licensing with ongoing supervision, not the ministerial registration used in Texas, Utah, and Virginia.

  • First state law to sweep in traditional factoring alongside sales-based financing.

  • Requires standardized disclosures including APR — joining CA, NY, and CT.

  • Borrows the toughest Texas HB 700 provisions: a ban on debiting the merchant’s deposit account and a prohibition on confessions of judgment.

  • Contracts with Vermont merchants must be governed by Vermont law, disputes brought in Vermont courts, and any in-person arbitration held in Vermont.

  • Exemptions: banks and depositories, sellers financing their own goods or services, and non-consumer transactions of $1 million or more.

 

What to watch

 

Effective July 1, 2027 — a year of runway, but licensing has lead time. RBF shops and factors with Vermont merchants on the books should start planning now.

 

Vermont coverage from Funder Intel

 

 

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 · Connecticut · Kansas · Missouri · Louisiana · Texas · 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.

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