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Practical writing on merchant cash advances, business financing, and how to keep stacked deals from sinking your cash flow.
The CFPB's revised Section 1071 rule formally exempts merchant cash advances from small business lending data reporting, but state-level action is accelerating—Connecticut is moving to ban prejudgment remedy waivers and New York's new FAIR Act gives regulators broader tools against abusive MCA practices.
New York's FAIR Business Practices Act is reshaping how merchant cash advance funders can collect debts, Texas's HB 700 disclosure regime is fully in force, Connecticut is moving to close a lender-favored loophole, and Yellowstone Capital's AG settlement checks are reaching small businesses.
The CFPB's May 2026 overhaul of small-business lending data rules carves out merchant cash advances entirely—just as tariff pressures funnel more desperate small businesses toward high-cost advances and New York, Connecticut, and federal enforcers tighten the screws on abusive practices.
The CFPB's revised Section 1071 rule, published May 1, officially locks merchant cash advances out of federal small business lending data requirements — while Illinois, New Jersey, and Connecticut push new state-level MCA protections in 2026.
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