New York Commercial Lending Compliance
Commercial Financing Disclosure Law
Quick Summary
New York requires written disclosures for commercial financing under $2.5M with higher penalties than most states. Broker registration is mandatory and compensation must be disclosed.
At a Glance
Disclosure Law
Yes
Commercial Financing Disclosure Law
Effective Date
April 3, 2020
Loan Threshold
Under $2,500,000
Applies to loans below this amount
Maximum Penalty
$50,000 per violation
Per violation, no cap
Key Requirements
What You Must Disclose:
Written disclosure required for all covered transactions
Annual Percentage Rate (APR) disclosure
Total cost of financing in dollars
Term of the financing
Payment amounts and schedule
Collateral requirements disclosure
Broker compensation must be disclosed
Disclosure timing: before consummation of transaction
Specific standardized disclosure form required
Common Mistakes Brokers Make
Failing to register as commercial financing provider
Not disclosing broker compensation
Using non-standardized disclosure forms
Providing disclosures too late in process
Omitting collateral requirements
Not updating disclosures when terms change
How SalesLeadAgent Helps
- Email templates with New York-compliant language pre-loaded
- Automatic state detection from lead data
- Disclosure reminders at key stages of your sales funnel
- Track which disclosures were sent to which leads
Who Is Exempt?
The following entities and transactions are typically exempt from Commercial Financing Disclosure Law:
- Banks and credit unions
- Licensed lenders under NY Banking Law
- Transactions over $2.5 million
- Purchase money loans for real property
- Leases (unless structured as financing)
Note: Even if you're exempt from state disclosure laws, federal regulations may still apply. Consult with legal counsel to understand all applicable requirements.
Penalties & Enforcement
Financial Penalties
First Violation
$10,000
Subsequent Violations
$50,000 per violation
There is typically no cap on total penalties. Multiple violations can result in hundreds of thousands of dollars in fines.
Enforcement
Enforced By
New York Department of Financial Services (DFS)
Additional Consequences:
- •Private right of action (customers can sue)
- •Public disclosure of violations
- •Reputational damage with lenders and clients
- •Potential loss of licensing or operating privileges
Ready to Streamline New York Compliance?
SalesLeadAgent automatically handles compliance requirements for New York and all other states, so you can focus on closing deals instead of worrying about regulations.
Important Legal Disclaimer
This page provides general information about New York commercial lending regulations and is not legal advice. Laws change frequently and interpretation varies by circumstance. Users should consult with qualified legal counsel before relying on this information for compliance purposes.
SalesLeadAgent and its affiliates disclaim all liability for actions taken or not taken based on information provided here. While we strive to keep this information current, we make no warranties about the completeness, reliability, or accuracy of this information.
Last updated: January 12, 2026
Sources: New York state statutes, New York Department of Financial Services (DFS)