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Here we have for what appears to be the first time ever

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a state actually implementing its disclosure

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law that it passed. We've had several States Implement of

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past laws and not Implement them. Virginia is

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going to be the first as of at least

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as of Friday.

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It was still on to go into effect on

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July 1st. Now. It's possible. It could

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be delayed. Yeah for like a month or so. Yeah only because

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the law requires that some

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very specific form disclosure form

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be used in this form was given out to

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a lot of the companies that will be impacted and I think

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there was some worry that

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they would not be able to incorporate it into their technology Quicken up.

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But okay great. Here's this form. What do

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you mean? I have to implement it by what if July first is what Friday Friday we mean

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to implement it by Friday. Yeah. You got to give me you just

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got to give me maybe even just a couple more months like

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You know, we'll do it. Right we know we have to comply

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just give me a little bit more time. And so there is

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a disclosure form that's been drafted that is available

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on our site that you can see.

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And it's a it's it's very basic. How much

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is the merchant gonna get funded? You know, what is the cost? What are

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all the fees broken down? These type of things can

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can already usually be found on a small business finance

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contract. I think one of the new and

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unique pieces of it is that

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it does require the funding company to put the amount

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of commission or compensation that the broker

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is getting. Yeah. So normally the merchant would

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not know what the

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broker was getting could be

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thousands of dollars. Yeah could be 100 dollars, but I

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don't know that the merchants usually new now.

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It's going to be spelled out on an actual form right

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in a very specific area that don't they'll

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know where to look and so I don't know if that

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will change the negotiation process between

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the merchant and the broker I actually posted a post a

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question on LinkedIn asking people what they

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thought will happen and there is some belief that

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Change the negotiating conversation that let's

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say a broker stands to makes a significant chunk

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of change right that the

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there could be some pushback from the merchant to say,

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why are you making so much? You know what I mean?

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Like, what can we do to get my own cost down where you're

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not getting this what I perceive to be an exorbitant amount

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of money. It might not even be exorbitant. It might be low, right? But no,

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how can how does how can I change my

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own cost now when I see what you're making? Oh, you're

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gonna make $8,000 on this. Well, why don't

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you go back to the underwriters and tell them I want a much better deal. Yeah, since

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you're making all this money go work harder for me get me

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something better, right? You can't just give me

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two phone calls and shoot me an email and get eight grand out of

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it. Yeah, go to work for me do the work.

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Now, I don't know that the merchants are

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going to realize that oftentimes this sales person.

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They're working with isn't getting that amount. They're usually

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getting a percentage of that amount because it's the broker's shop.

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That's getting the total dollar amount. But in

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any case, you know, what's different about the contract is going

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to be that disclosure. That's probably going to change the

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conversation. And then what was it? What was the second thing

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that you asked so how I was going to impact businesses in

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okay. Yeah doing businesses with MCAS. Okay, or

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it's not just MCA. That's all types of small business

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financing. And so the other aspect of how

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will it change is that by November if you

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want to offer small business financing?

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To a virginia-based business

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you have to register with the state of Virginia. You

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have to abide by a certain set of rules. You have

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to submit yourself to a background check and pay a fee. If

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you're any type of criminal or whatever. They're looking

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at the officers the owners the managers the directors whoever

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effectively control the organization if you're basically a

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criminal you're not going to be allowed to do that type of

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business in Virginia. Also, if you have a

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dispute over the contract, it does require you

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to bring your case in the state of Virginia. You

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would not be this now. This is my non lawyer

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hat. So please consult the way over everything but

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My Elementary reading of it. It's kind

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of states that you'd have to bring your claims in

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a Virginia court that you couldn't sue them in

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the near in New York state. Yeah also, you

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could be subject to audits penalties and

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fines by the Virginia state regulator. You have to

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pay an annual fee. You're essentially have to be licensed. Yeah. And so

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you cannot just do business freely and

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not think you're care about anything. There's now going

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to be a watchdog essentially regulator. Yeah who oversees you

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in that state? Yeah, that's that goes into

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effect. My understanding is November the having to be licensed part

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but the commission disclosure and the rest of the disclosure. It's supposed to

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go into effect July first. So do you think that other states will also

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take no of what's going on in Virginia

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and how they're doing things and implement it into what

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they want.

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I mean, I don't know that they don't necessarily follow what

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Virginia is doing. I think Virginia followed other states. Yeah,

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California Pastor law four years ago, and it

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finally goes into effect in December.

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New York passed its law is not yet got into effect. Yeah,

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and we're still waiting for a a updated

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and updated.

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Guidance or draft? I'm not really sure what it is.

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What what you would call it. But um, there was

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a proposal as to how the law would be carried out by the

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New York State regulator and they put out something and

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people said it's not going to work someone back to the drawing board and we had

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haven't heard from them since Utah also passes own

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law that's going to go into effect as well.

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I don't think people are gonna look to Virginia necessarily for how you

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know, what can they do in their own state? But I think that they may

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look at it for how how quick

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was the industry able to adapt

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to providing the disclosures because

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if you say it's impossible to give you to comply it's

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such a short amount of time. We'll have to update

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all our technology and everyone does it and one day. Yeah,

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and then you tell California it's gonna take me years to do

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it. Yeah, like