Merchant Cash Advances Excluded From CFPB Small Business Loan Data Collection

Merchant Cash Advances are now excluded from the CFPB’s small business loan data collection requirements. In the final rules filed by the agency on April 30th, the previous proposal to exclude MCAs from Section 1071 is now deemed approved and final.

“Since MCAs are not covered credit transactions under this final rule, no MCA providers will be required to report,” the docs say. The rationale is discussed across the 314 pages that comprise the final decision. However, the agency did leave open the possibility to reconsider the inclusion of MCAs years down the road.

But for now after more than a decade of debate and confusion over the matter, MCAs will not be considered a covered credit transaction for the purpose of Section 1071 of the Wall Street Reform and Consumer Protection Act. You can read the final rules here.