Time’s Almost Up: Are You Ready to Comply With the New Virginia Disclosure Law?
Remember when Virginia passed a landmark sales-based financing law? Well, it’s supposed to go into effect on July 1st.
This is a draft of what the disclosure form is supposed to look like, though with only days left to begin compliance, it hasn’t even been 100% finalized.
Notably, funders will have to begin disclosing to merchants the amount of compensation being paid to the broker in connection with a deal. Also, by November 1st, funders and brokers will have to register their business with the State if they wish to continue working with Virginia-based businesses, a process that would include a background check and registration fees.
Please consult an attorney for official guidance on compliance.Last modified: June 30, 2022