Disclosures
State commercial financing disclosures, and how the firm complies.
A growing number of states require that a business receiving an offer of commercial financing be given a standard disclosure of its cost and terms, and several of them require the providers and brokers involved to register. This page sets out what those laws require, which states have them, and what Citadel Ridge does on every file. It is written for business owners and for the counterparties we work with.
Last reviewed September 8, 2026. Reviewed again each quarter and on any change in law.
What the laws require
A standard disclosure at the time of the offer.
Modeled on consumer truth in lending, applied to commercial financing.
Beginning with California in 2018 and New York in 2020, states have enacted laws that require the provider of commercial financing, at the time it makes a specific offer, to disclose in a prescribed form the total amount of funds provided, the total repayment, the finance charge, an annual percentage rate or an equivalent metric, the payment amounts and frequency, the term, and the prepayment terms. The laws cover loans, lines of credit, sales based financing such as merchant cash advances, factoring, and lease financing, below thresholds that differ by state, and exempt banks, large transactions, and certain other categories.
Where a broker is involved, the laws generally require the provider to deliver the disclosure to the broker and the broker to present it to the business, unaltered, before the business signs. Several states go further and require providers and brokers of sales based financing to register with a state agency, post a bond, or renew annually, and a number prohibit brokers from collecting fees in advance of funding or from making untrue statements about an offer.
Citadel Ridge LLC is a broker and advisor, not a provider. The firm does not extend financing, does not set the terms of any offer, and does not prepare the provider's statutory disclosure. Its obligations under these laws concern registration where required, the pass through of the provider's disclosure, and conduct.
State by state
The states with commercial financing laws.
Effective dates, thresholds and registration requirements as the firm reads the statutes and the regulators' published guidance.
| State | Law | Disclosure | Registration and broker rules |
|---|---|---|---|
| California | SB 1235, Commercial Financing Disclosures; DFPI regulations effective December 9, 2022 | Required from providers on commercial financing of $500,000 or less | No broker registration under the disclosure law. Providers report annually to the DFPI. Separate California Financing Law licensing questions apply to brokering commercial loans. |
| New York | Commercial Finance Disclosure Law; DFS regulations effective August 1, 2023 | Required from providers on commercial financing of $2,500,000 or less | No broker registration. Brokers must pass the provider's disclosure through unaltered. |
| Utah | Commercial Financing Registration and Disclosure Act, effective January 1, 2023 | Required from providers | Provider registration with the Utah Department of Financial Institutions. Brokers are not separately registered. |
| Virginia | Sales based financing law, effective November 1, 2022 | Required from providers on sales based financing | Providers and brokers of sales based financing register with the State Corporation Commission and renew annually. Exemptions include 5 or fewer transactions in 12 months and transactions above $500,000. |
| Georgia | SB 90, effective January 1, 2024 | Required from providers on commercial financing of $500,000 or less | No registration. Broker conduct provisions. |
| Florida | Florida Commercial Financing Disclosure Law, effective January 1, 2024 | Required from providers on commercial financing of $500,000 or less | No registration. Brokers may not assess fees before closing, may not make false or misleading statements, and must comply with the broker provisions of the act. |
| Connecticut | SB 1032, effective July 1, 2024; registration effective October 1, 2024 | Required from providers on commercial financing of $250,000 or less | Providers and brokers register with the Department of Banking through NMLS and renew annually. |
| Kansas | Commercial financing disclosure law, effective July 1, 2024 | Required from providers on commercial financing of $500,000 or less | No registration. |
| Missouri | Commercial Financing Disclosure Law, effective on adoption of rules | Required from providers on commercial financing of $500,000 or less | Broker registration with the Division of Finance, with a surety bond and annual renewal. |
| Louisiana | Commercial financing disclosure law, effective January 1, 2025 | Required from providers | Brokers pass the provider's disclosure through unaltered. |
| Texas | HB 700, effective September 1, 2025 | Required from providers on sales based financing | Providers and brokers of sales based financing register with the Office of Consumer Credit Commissioner through NMLS; applications opened September 1, 2026 and registration is required by December 31, 2026. |
| Illinois | Small Business Financing Transparency Act, effective 2027 | Required from providers | Broker registration, with an exemption for brokers whose fees are wholly contingent on successful procurement and who collect no earlier broker fee. |
| North Dakota | Money Brokers Act | Not a disclosure law | Brokering commercial loans requires a money broker license from the Department of Financial Institutions, with a bond and minimum net worth. |
| North Carolina and Nebraska | Loan broker statutes | Not disclosure laws | Filings with the Secretary of State or the Department of Banking and prohibitions on advance fees. |
| Vermont | Licensing of commercial lenders and brokers, expanding July 1, 2027 | Not a disclosure law | Existing broker licensing extends to sales based financing and factoring brokers in 2027. |
Summaries only. The statutes and regulations govern. Thresholds, exemptions and effective dates change; the firm reviews this page each quarter and on any change in law. Nothing here is legal advice.
What the firm does
On every file, in every state.
Standing practice
7 commitments.
Written to be read by a regulator, because 1 will.
The provider's disclosure is passed through unaltered
Where a state requires a disclosure, the firm delivers the provider's statutory disclosure to the business as received, before signature, and keeps a record of delivery. The firm does not prepare, edit or summarize the statutory form in place of the provider.
Registration before activity
The firm does not broker sales based financing to a business located in a state that requires broker registration until the firm is registered there or has confirmed with counsel that an exemption applies.
Compensation disclosed first
On funding placements, the firm's compensation is disclosed to the business before it signs anything. Advisory mandates are fixed fee, paid at execution by wire, and set out in a single mandate document; the fee purchases services and work product, not a result.
The true cost is read to the business in every state
Whether or not a state requires it, the firm reads the effective annualized cost of every option to the business before it chooses, in writing, using the provider's disclosure where 1 exists and the firm's own model where none does. The firm's model is labeled as its own and is not represented as a statutory disclosure.
No untrue statements about an offer
The firm does not characterize a reverse consolidation as a buyout, a factor rate as an interest rate, or an estimate as a commitment. Where a state prohibits brokers from making false or misleading statements about commercial financing, the firm's practice already exceeds the standard, and the practice applies everywhere.
Business clients only, consent on record
The firm serves operating businesses. Calls and texts to a business owner are made only with the owner's consent, recorded through the intake form, and every text carries the opt out instruction. The firm does not offer consumer credit or consumer services.
Records
Disclosures delivered, compensation disclosed, consents received and the mandate document for each engagement are kept for the period the applicable law or the engagement requires, and are available to the business on request.
Questions
Ask before you sign.
Disclosure questions go to the principal, in writing.
If you have received an offer through Citadel Ridge and have not received the provider's disclosure your state requires, or if any statement made to you about an offer does not match the paper, write to info@citadel-ridge.com or call 307-452-7831. The firm answers disclosure questions in writing and keeps the correspondence with the file.
Citadel Ridge LLC, a Wyoming limited liability company, 5830 E 2nd St, Ste 7000, Casper, WY 82609. This page is updated on any change in the laws it describes; the date of the last review appears at the top of the page.
By state
What this means where you operate.
The states with the most developed rules, each written out with what a funder owes you before you sign and what the market looks like there.