WASHINGTON, D.C. – The Financial Technology Association (FTA) raised concerns with the amended Connecticut House Bill 5211, legislation governing commercial financing, in a letter to Senate leadership.
“Connecticut’s current disclosure law, which took effect in 2024, already provides clear metrics that keep small businesses well-informed of the total cost of their sales-based financing products,” wrote FTA President and CEO Penny Lee. “We believe those already mandatory total cost of capital disclosures provide a better uniform metric for short-term commercial financing products, and note that eight other states have already adopted that same model without requiring any APR disclosure. Ultimately, we support the enactment of a uniform, model state commercial financing disclosure law that harmonizes differing state requirements and accounts for varying financing models as the best path to ensuring that small businesses are making informed decisions.”
Read the full opposition letter here.
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