Connecticut · Regulatory Update
Business Funding in Connecticut, Where Things Stand After §36a-861
Connecticut's small-business base sits between Hartford's insurance and financial-services hub, the New Haven biotech and university corridor, the Stamford / Fairfield County corporate belt, and a long tail of trade contractors and independent retailers across the rest of the state. As of July 1, 2024, commercial financing providers and brokers operating in Connecticut must register with the Department of Banking under the Commercial Financing Provider/Broker Registration Act. Commera Finance serves Connecticut businesses through funding partners registered under Connecticut's commercial financing law. This page exists so CT owners can find honest context.
What Connecticut's commercial financing law means for you
Connecticut Commercial Financing Provider/Broker Registration Act
Effective: July 1, 2024
Citation: Conn. Gen. Stat. § 36a-861 et seq.
Connecticut requires commercial financing providers AND brokers to register with the Connecticut Department of Banking before facilitating commercial financing transactions in the state. The act applies to non-bank providers of sales-based financing, including merchant cash advances, and pairs registration with disclosure obligations on the provider side. Registration is annual and includes a fee plus information about ownership and operational presence.
Applicability
Applies to commercial financing transactions where the recipient business is located in Connecticut. Banks and bank-affiliated entities are exempt. Brokers facilitating these transactions to CT businesses must register independently of the provider.
What you should expect
- Most established MCA funders have either registered with the CT Department of Banking or paused new Connecticut originations
- Brokers facilitating CT deals must also be registered, not just the provider
- Disclosure obligations on the provider mirror the structure of other state laws: total amount, finance charge, term, payment schedule
- Expect ongoing rulemaking as the Department of Banking shapes enforcement priorities
Plain-English context, not legal advice. The Connecticut framework is still settling in. Verify any CT-specific compliance question with qualified counsel.
Funding options for Connecticut businesses
An advisor prices these against each other for your file rather than pushing whichever one funds fastest.
Figures on this page are illustrative estimates only and are not an offer of financing. All amounts, rates, factor rates, terms, payment amounts, timelines, and qualification criteria vary by lender, depend on funder underwriting and your business's bank statement history, and are subject to change without notice. Nothing here is guaranteed until a funder issues terms and you sign them. Factor rates do not represent APR. Commera is a broker, not a lender, and does not set rates.
Common questions from Connecticut owners
Is a merchant cash advance legal in Connecticut?
Yes, MCAs are legal for commercial purposes in Connecticut. As of July 1, 2024, providers and brokers must register with the CT Department of Banking under Conn. Gen. Stat. §36a-861. The law adds a registration layer on top of the standard commercial-financing disclosure requirements.
How does Commera Finance serve Connecticut businesses under §36a-861?
Commera Finance serves Connecticut businesses through funding partners registered with the CT Department of Banking under Connecticut's commercial financing law. We verify a funder's registration status before submitting a Connecticut file; if we can't verify it, we don't submit.
Which options sit outside the CT registration framework?
Options not materially affected by the CT registration framework: SBA loans (federally regulated, exempt), traditional bank lines of credit (bank-issued financing is exempt), and invoice factoring (treated differently from MCA under CT law). Questions about your options? Email contact@commerafunding.com.
How does Commera Finance pick funders for Connecticut deals?
We match Connecticut files only to funding partners registered with the CT Department of Banking or properly exempt. If we can't verify a funder's status, we don't submit the file.
See your Connecticut offers in 24 hours.
Three quick questions, then we shop your file across Connecticut-active funders and bring back the compliant offers.
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