The Green Sheet Online Edition
November 11, 2024 • 24:11:01
Custom API-supported SMB disclosure service
Rapid Finance, a platform focused on providing customized financing solutions for small businesses, launched its SMB Disclosure Service, a standalone SaaS regulatory compliance module designed to help business funders meet Connecticut’s commercial disclosure requirements.
The state's new rule, which went into effect July 1, 2024, mandates that funders provide disclosures for commercial financing of $250,000 or less to ensure transparency for small businesses. As of Oct. 1, 2024, funders and financing companies operating in Connecticut are also required to register with the Connecticut Department of Banking.
Connecticut’s disclosure law is part of a national movement prioritizing borrower protections and transparency in small business lending. Several states, including New York, California, Utah, Florida, Georgia, Kansas and Virginia, have enacted similar regulations aimed at standardizing disclosures for lower-tier commercial financing. This trend allows small business borrowers to make better-informed financial decisions.
"With more states adopting these laws, we’re making it easier for small business applicants to understand financing terms,” said Will Tumulty, CEO of Rapid Finance. "Yet, staying current with state-specific regulations can be a challenge for SMB lenders. Rapid’s SMB Disclosure Service streamlines compliance and adapts as new regulatory requirements emerge."
Funders can use the SMB Disclosure Service by integrating their current origination platforms with Rapid Finance’s API or through a user-friendly interface to generate compliant disclosures in HTML or PDF formats, the company stated. This flexible approach enables lenders to provide clear, compliant statements to business clients. Additionally, Rapid Finance noted that it offers a robust technology suite for small business lenders, including modular origination systems that simplify the lending process and align with lenders' existing infrastructures.
Since 2005, Rapid Finance has supported small business growth across the United States with advanced, scalable financing solutions and lending-as-a-service tailored to enterprise clients’ needs. The company's team is proactively monitoring additional state regulations in this space and will continue to add new states as similar laws come into effect. For more information, please email enterprisesales@rapidfinance.com. 
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