Virginia · Regulatory Update
Business Funding in Virginia, Where Things Stand After HB 1027
Virginia's small-business base spans the federal-contractor and tech corridor of Northern Virginia, the financial-services and healthcare economy of Richmond, the port and defense logistics of Hampton Roads, and a deep agricultural and trade-contractor footprint across the Shenandoah Valley and Southside. HB 1027, effective November 1, 2022, requires commercial financing providers AND brokers to register with the Virginia State Corporation Commission. Commera Finance serves Virginia businesses through funding partners registered under Virginia's commercial financing law. (VA also offers a de minimis exemption for brokers completing fewer than 5 transactions per 12-month period.) This page exists so VA owners can find honest context.
What Virginia's commercial financing law means for you
Virginia Commercial Financing Disclosure Law (HB 1027)
Effective: July 1, 2022 (disclosure obligations); provider and broker registration deadline November 1, 2022
Citation: Va. Code § 6.2 Chapter 22.1 (HB 1027)
Virginia requires commercial financing providers AND brokers to register with the Virginia State Corporation Commission. The act applies to non-bank providers and brokers of sales-based financing, including merchant cash advances, and pairs registration with disclosure obligations on the provider side. The disclosure must include the total amount of financing, the finance charge in dollars, the term, the payment amount and frequency, and the prepayment policy. Brokers facilitating these transactions must register independently of the provider, with a de minimis exemption available for those completing fewer than 5 transactions per 12-month period.
Applicability
Applies to commercial financing transactions with businesses located in Virginia. Banks and bank-affiliated entities are exempt. Brokers facilitating fewer than 5 transactions per rolling 12-month period may qualify for a de minimis exemption, but the threshold is low and most active brokers register fully.
What you should expect
- Most established MCA funders have registered with the VA SCC or paused new VA originations
- Brokers facilitating VA deals must also be registered (or qualify under the de minimis exemption)
- Disclosure obligations on the provider mirror the structure of other state laws: total amount, finance charge, term, payment schedule
- VA SCC enforcement and registration guidance has been in place for several years and is more mature than newer states
Plain-English context, not legal advice. Verify any VA-specific compliance question with qualified counsel.
Funding options for Virginia 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 Virginia owners
Is a merchant cash advance legal in Virginia?
Yes, MCAs are legal for commercial purposes in Virginia. As of November 1, 2022, providers and brokers must register with the Virginia State Corporation Commission under HB 1027 (Va. Code §6.2 Ch. 22.1). The law adds a registration layer on top of standard commercial-financing disclosure requirements.
What does the Virginia commercial financing disclosure law require?
Virginia's commercial financing disclosure law (HB 1027, Va. Code § 6.2 Chapter 22.1) requires providers of commercial financing to disclose the total amount financed, the finance charge in dollars, the term, the payment amount and frequency, and the prepayment policy. Providers and brokers must also register with the Virginia State Corporation Commission, with a de minimis exemption for brokers completing fewer than 5 transactions in 12 months. Banks and bank-affiliated entities are exempt.
How does Commera Finance serve Virginia businesses under HB 1027?
Commera Finance serves Virginia businesses through funding partners registered with the Virginia State Corporation Commission under Virginia's commercial financing law. We verify a funder's VA SCC registration status before submitting a Virginia file; if we can't verify it, we don't submit.
Which options sit outside VA's broker registration framework?
Options not materially affected by VA's broker registration framework: SBA loans (federally regulated, exempt), traditional bank lines of credit (bank-issued financing is exempt), and direct relationships with VA-registered commercial financing providers. Questions about your options? Email contact@commerafunding.com.
How does Commera Finance pick funders for Virginia deals?
We match Virginia files only to funding partners registered with the VA SCC. If we can't verify a funder's status, we don't submit the file.
See your Virginia offers in 24 hours.
Three quick questions, then we shop your file across Virginia-active funders and bring back the compliant offers.
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