The idea that business-loan brokers never need a license is fading. For CBPLA members who arrange business financing beyond real estate loans, several US states now require registration or licensing, and two deadlines are close.
What's coming
| State | Rule | Key date |
|---|---|---|
| Texas | Providers and brokers of commercial sales-based financing must register with the Office of Consumer Credit Commissioner under Finance Code chapter 398; applications through NMLS opened 1 September 2026 | Register by 31 December 2026 |
| Vermont | Act 142 brings sales-based financing and factoring into Vermont's lender and loan-solicitation licensing framework | 1 July 2027 |
| California | AB 2116 extends CFL licensing to commercial financing providers and brokers (Blog 16) | 1 July 2028 |
| Missouri | Covered commercial financing brokers must register and post a $10,000 surety bond; scope includes commercial loans | In force |
| North Dakota | A Money Broker License is required to broker loans, including commercial loans, to North Dakota borrowers | In force |
Source: Funder Intel, current to 12 August 2026; confirm each rule with the state regulator.
Does this affect mortgage brokers?
Mostly where you arrange financing that is not secured by real estate: merchant cash advances, revenue-based financing, factoring, equipment leases or unsecured business loans. Real estate-secured loans have their own licensing rules (Volume 1, Article 3). But many brokers offer both, and these laws generally follow the business's location, not the broker's, so a Canadian broker serving a Texas client can be caught.
Fees matter too
Some states that do not register brokers still regulate how they are paid. Florida, for example, prohibits covered commercial financing brokers from collecting advance fees from a business.
What to do
- List every non-real-estate financing product you arrange and the states your clients are in
- If you arrange sales-based financing for Texas businesses, register through NMLS before 31 December 2026
- Review fee structures against state advance-fee rules
This content is general information for industry professionals and is not legal, tax or financial advice. Laws change and apply differently to each transaction; obtain advice from qualified counsel in each relevant jurisdiction. Legal counsel to the Cross-Border Private Lenders Association: Jasmine Daya & Co. Questions: info@cbpla.com