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ARTICLE · 13 DECEMBER 2022

New CA Commercial Financing Disclosure Regulations Take Effect

Pillsbury Winthrop Shaw Pittman
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In September 2018, California became the first state to enact legislation to impose consumer-style disclosure requirements for commercial financing transactions.

United StatesFinance and Banking
Brian Montgomery
Brian Montgomery

As of December 9, 2022, California is requiring consumer-style disclosures for broad categories of commercial financing transactions, continuing the trend toward increased scrutiny of commercial lending.

TAKEAWAYS

  • On June 9, 2022, California's Department of Financial Protection and Innovation promulgated final implementing regulations that require consumer-style disclosure requirements for commercial financing transactions.
  • New York is expected to issue regulations that will implement similar requirements.
  • Utah and Virginia enacted similar laws this year, and other states will likely follow.

In September 2018, California became the first state to enact legislation to impose consumer-style disclosure requirements for commercial financing transactions. However, the legislation was drafted so that it would not become effective until the California Department of Financial Protection and Innovation (DFPI) promulgated final implementing regulations, which

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