On April 11, 2022, Virginia became the second US state to require providers of merchant cash advance (“MCA”) products to obtain a state regulatory license or registration—hot on the heels of Utah. With Governor Glenn Youngkin’s signing House Bill 1027 into law, companies providing “sales-based financing” in Virginia will now be required to provide up-front disclosures about financing terms, follow certain dispute-resolution procedures, and register with the Virginia State Corporation Commission by November 1, 2022.
Read more in Mayer Brown’s Legal Update.