State Disclosure Regulation Procedures
Due to the ever-evolving nature of state regulations in the small business finance space, we are continually monitoring news and disclosure laws in order to stay compliant and make smart underwriting decisions. Partners, we encourage you to bookmark this webpage.
California
New York
Utah
Virginia
California
The majority of California’s regulatory compliance requirements are ultimately the funder’s responsibility, Below, we have outlined your shop’s responsibilities to stay in compliance with our new policy:
- ISO MUST PROVIDE 4 MONTHS OF BANK STATEMENTS and any and all balances outstanding to the best of their knowledge for the most accurate disclosure.
- The disclosure agreement (funding, payback, and payment disclosed to merchant)must be issued at the time the offer is made unless multiple offers are presented. IT IS VERY IMPORTANT THAT YOU ALWAYS PRESENT ALL THREE OPTIONS PROVIDED BY ELEVATE TO THE MERCHANT.
- If the circumstance arises where you can only present one offer– you will need to notify us so that we can provide disclosure agreement to go with the offer.
- What constitutes an offer being made– according to the state of California, even a text stating, “I have 20,000 for you at $97 a day,” would constitute an offer. Elevate is taking the stance that any presentation of financial options should be treated as an offer.
- Once the merchant determines which offer they wish to take, the partner must immediately send an email to our contracts team so we can present the appropriate disclosure agreement for their chosen offer.
- The referral partner needs to present to Elevate– the method in which the offers were presented and the method in which the merchant selected the offers (email, text, phone) and time stamp for the acceptance of offers.
- Please provide both the merchant’s email and their cell phone number so we may send their contract via Docusign as quickly as possible.
If you do not follow through on your responsibilities outlined above, then you are no longer in compliance and are at risk of partnership termination.
Last edits made: 12/7/22
New York
TBD
Utah
TBD
Virginia
- Referral partners must be registered as ISOs in the state.
- Elevate agreements now disclose agent commission.
Last edits made: 12/7/22
