What it means for you
Before you sign an MCA with a covered provider, you should see the funds provided, the funds you actually receive, the total you will repay, the total dollar cost, the payment schedule and whether paying early costs or saves anything. You will not see an APR unless the funder adds one. The provider must hold a Utah registration.
- Law
- Commercial Financing Registration and Disclosure Act
- Citation
- Utah Code §§ 7-27-101 to 7-27-301
- Enacted
- 2022-03-24
- Effective
- 2023-01-01
- Regulator
- Utah Department of Financial Institutions (DFI)
- Who it covers
- Providers that complete more than 5 commercial financing transactions in Utah in a calendar year, for deals in Utah or with a Utah resident. Covered products are commercial loans, commercial open-end credit and accounts receivable purchase transactions (a business selling its accounts or payment intangibles at a discount), which is how merchant cash advances are usually structured.
- Registration
- Providers must register with the Utah Department of Financial Institutions through NMLS before doing business and renew every year. Registrations expire December 31. The DFI lists an initial fee of $300 and a renewal fee of $200.
- Brokers
- None. The act defines brokers but does not require them to register. A 2024 amendment removed the rule that providers disclose what they pay a broker.
What must be on the disclosure
- Total amount of funds provided
- Total amount of funds disbursed, if less than the funds provided
- Total amount to be paid to the provider
- Total dollar cost of the financing
- Manner, frequency and amount of each payment, or an estimate if payments vary
- Whether there are any costs or discounts for prepayment
- A description in the agreement of how any variable payment is calculated and what can make it change
What a Utah MCA offer must show
Before closing, the provider must disclose the total funds provided, the funds disbursed if that is less, the total amount you will pay, the total dollar cost, and the manner, frequency and amount of each payment. If payments vary, it can give estimates. It must also say whether prepaying carries any cost or discount.
The agreement must describe how any variable payment is calculated and what can make it change. The DFI has said it is not writing disclosure rules or a template, so layouts differ by funder.
Registration with the Utah DFI
Since January 1, 2023, a provider may not do commercial financing in Utah or with a Utah resident without a current registration. The registration statement covers the provider's offices, an agent for service of process and any convictions for fraud, dishonesty, breach of trust or money laundering.
If the DFI notifies an unregistered provider and it does not register within 30 days, the DFI can fine it $500, or $500 per Utah office if it has 2 or more.
What the Utah law does not do
- It does not require an estimated APR.
- It does not set a maximum price.
- It creates no private right of action, and a violation does not affect whether the agreement can be enforced.
- It places no duties on brokers.
- It does not cover deals over $1 million.
The DFI enforces the act. Civil penalties are $500 per violation, up to $20,000 for violations from the same documents, and $1,000 per violation, up to $50,000, for repeat violations.
This page is general information, not legal advice.
Who is exempt
- Depository institutions and their regulated subsidiaries and service corporations
- Lenders regulated under the federal Farm Credit Act
- Licensed money transmitters
- Providers that complete 5 or fewer commercial financing transactions in Utah in 12 months
- Financing secured by real property, leases and purchase-money obligations
- Loans or credit lines of $50,000 or more to motor vehicle dealers or rental companies
- Financing offered with a product or service the provider or its parent or subsidiary makes, licenses or distributes
- Transactions over $1 million
Questions
Does Utah require an APR on MCA offers?
No. Utah's required disclosures are dollar amounts and payment terms. The act does not require an APR.
Do MCA brokers have to register in Utah?
No. The registration duty applies to providers. A 2024 amendment also removed the requirement to disclose what a provider pays a broker.
Can I sue a Utah provider for a missing disclosure?
Not under this act. It states that it creates no private right of action, and a violation does not affect the enforceability of the agreement. The DFI can take complaints and impose civil penalties.
Which deals fall outside the Utah act?
Deals over $1 million, financing secured by real property, leases and deals from providers with 5 or fewer Utah transactions in 12 months, among others. Depository institutions and licensed money transmitters are also exempt.
Sources
- Utah Code Title 7, Chapter 27: Commercial Financing Registration and Disclosure Act (version effective May 4, 2022) — Utah State Legislature (checked 2026-09-30)
- Utah Code Chapter 7-27 (current) — Utah State Legislature (checked 2026-09-30)
- S.B. 183 (2022): bill status — Utah State Legislature (checked 2026-09-30)
- S.B. 25 (2024), enrolled: Financial Institution and Consumer Notification Amendments — Utah State Legislature (checked 2026-09-30)
- S.B. 25 (2024): bill status — Utah State Legislature (checked 2026-09-30)
- Commercial Financing — Utah Department of Financial Institutions (checked 2026-09-30)
- Commercial Financing Registration and Disclosure Act FAQs — Utah Department of Financial Institutions (checked 2026-09-30)
Last reviewed 2026-09-30. General information, not legal advice. Laws and regulations change; confirm with the regulator or an attorney.