Utah Passes Commercial Financing Disclosure Law

The Governor of Utah signed SB183 last Thursday, a law that will require commercial financing providers to formally register with the State as well as provide uniform disclosures on the transactions they conduct.

Beginning January 1, 2023, covered parties will require State approval to conduct business with Utah customers. Following that, the disclosures listed below will be required in the contracts:

• Total amount of funds provided to the business
• Total amount of funds disbursed
• The total amount to be paid
• The total dollar cost of the transaction
• The manner, amount, and frequency of each payment OR the estimated amount of the initial payment
• A statement of costs or discounts associated with prepayment
• The broker’s commission amount
• Explanation of payment methodology and hypothetical circumstances that could cause it to vary

The full text can be read here. deBanked first reported on this bill on February 9th.

Utah follows Virginia, New York, and California who have all passed their own versions of a commercial financing disclosure law. Maryland is the most likely state to pass one next.