Business funding laws in New York
Last verified August 6, 2026 against primary sources. This page is general information, not legal advice.
What New York requires
New York requires providers to give standardized disclosures, including the annual percentage rate, on commercial financing offers of $2.5 million or less, including sales based financing. New York also banned confessions of judgment against out-of-state business owners in 2019, and its Attorney General won a judgment of more than one billion dollars against a merchant cash advance operation.
Federal rules that apply in every state
- The federal Truth in Lending Act does not cover business purpose loans. The standardized cost disclosures you get on a mortgage or a car loan are not required on most business financing. That is why state law matters here.
- The Equal Credit Opportunity Act does apply to business credit. A lender cannot discriminate based on race, sex, national origin, or other protected traits, and you generally have a right to learn why you were declined.
- The Federal Trade Commission acts against deception in business funding. Federal cases have returned millions of dollars to small businesses harmed by cash advance companies.
Six questions to ask before you sign
- What is the total dollar amount I will repay, all fees included?
- What is the cost expressed as an annual percentage rate?
- What happens if I pay early?
- Is there a confession of judgment or personal guarantee in this contract?
- Will payments change if my revenue drops?
- Who exactly is the lender, and who is just the marketer?
See funding options that may fit your business
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Keep Going Capital is a marketing and comparison service, not a lender. We do not make credit decisions. We connect business owners with independent funding providers.