Utah Commercial Lending Compliance
Commercial Financing Disclosure Act
Quick Summary
Utah requires licensing for commercial finance providers and written disclosures for loans under $500K. Criminal penalties possible for violations.
At a Glance
Disclosure Law
Yes
Commercial Financing Disclosure Act
Effective Date
May 4, 2021
Loan Threshold
Under $500,000
Applies to loans below this amount
Maximum Penalty
Class A misdemeanor
Per violation, no cap
Key Requirements
What You Must Disclose:
Written disclosure before consummation
APR and finance charges
Payment schedule
Prepayment terms
Specific format requirements
Common Mistakes Brokers Make
Operating without license
Missing disclosure timing
Incorrect APR calculations
How SalesLeadAgent Helps
- Email templates with Utah-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 Act:
- Banks and credit unions
- Loans over $500,000
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
Class B misdemeanor
Subsequent Violations
Class A misdemeanor
There is typically no cap on total penalties. Multiple violations can result in hundreds of thousands of dollars in fines.
Enforcement
Enforced By
Utah Department of Financial Institutions
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 Utah Compliance?
SalesLeadAgent automatically handles compliance requirements for Utah 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 Utah 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: Utah state statutes, Utah Department of Financial Institutions