Small business financers and brokers (“providers”) active in New York are officially on notice to finalize their preparations to comply with New York’s Commercial Finance Disclosure Law (“CFDL”) by August 1, 2023, the new effective date provided in final administrative regulations just issued on February 1 by the New York Department of Financial Services (“NYDFS”). 

In addition to the new effective date, the final rules include important changes regarding the New York nexus required to trigger the CFDL, exemptions for depository institution subsidiaries, and the content of required disclosures, among others.

With the adoption of the final rules, providers of commercial financing—including closed- and open-end loans, merchant cash advances, finance leases, and factoring transactions, at minimum—should finalize their procedures to ensure that they can deliver final rule-compliant disclosures to New York recipients starting on August 1 of this year.

Read more in Mayer Brown’s Legal Update.