SMB Financing Blog

In a recent Did You Know? post, we highlighted that 74% of SMBs are turning to non-bank lenders — and within that 74%, industries like hospitality, What matters more is how brokers use that insight to drive better outcomes for their merchants:

The Regulation Ripple that began in New York and expanded through states like Florida, Texas, and California continues to shape the alternative financing landscape. Now, attention is turning back to a familiar market: New Jersey. As regulatory conversations evolve across the country, New Jersey is once again moving into focus as part of the next phase in how funding transparency and disclosure may develop.

The MCA market continues to expand, but the pressure behind that growth is accelerating. As volume climbed to $19.7B, defaults surged 59% year over year, exposing a growing disconnect between funding demand and merchant durability. For brokers, the takeaway isn’t to slow down—it’s to structure smarter

Starting January 1, 2026, California is expanding regulatory scrutiny beyond disclosures and into how pricing is discussed throughout the application process — including calls, texts, emails, and sales conversations. In this latest issue, we break down what this means for ISOs and brokers and how to prepare.

The regulatory wave reshaping alternative finance isn’t slowing down — it’s expanding. From New York to Texas and California, with Florida as another key stop in the broader national progression, each state is moving toward stronger MCA transparency and heightened enforcement. This issue breaks down how Florida fits into the nationwide regulatory wave — and why brokers should be paying close attention.

From New York to California, the regulatory wave continues to reshape the alternative finance landscape. In this article, we break down how California’s rules differ from other states, how enforcement is beginning to take shape, and what brokers should do to stay compliant and competitive as these changes ripple across the industry.

When New York passed its Commercial Financing Disclosure Law (CFDL) in 2021, it set a new standard for transparency in alternative financing. What began as a state-level push to protect small business borrowers has evolved into the national blueprint for MCA regulation. From California and Connecticut to Texas and beyond, the ripple that started in New York continues to spread—shaping how funders, brokers, and merchants operate in a new era of accountability.

Summer is still the best time to prepare for Q4. But this year, margins are tighter, competition is tougher, and merchants are seeking capital earlier than ever. Brokers who act now will be best positioned to capture the biggest wins.