New York Commercial Financing Disclosure Requirements

Providers of commercial financing that are subject to the New York State Commercial Finance Disclosure Law (CFDL) must provide disclosures to potential recipients of commercial financing at the time a specific offer of financing is extended to a recipient, pursuant to new regulations adopted by the New York Department of Financial Services (DFS). The disclosure requirements, which take effect on August 1, 2023, are like moves in other states to regulate commercial lending like consumer lending, including in California, Utah, and Virginia.

Background

The CFDL, codified at Article 8 of the New York Financial Services Law, mandates standardized disclosures for commercial financing below a certain principal amount, to address the lack of standardized disclosures in small business lending. The CFDL requires certain providers of commercial financing in amounts of up to $2,500,000 to provide standardized disclosures to potential borrowers at the time financing offers are