CT SB00745

Requires providers of commercial financing (including sales-based financing, closed-end financing, open-end financing, and factoring transactions) to disclose specific terms to recipients, including total financing amount, finance charges, annual percentage rate (APR), total repayment amount, payment terms, and prepayment penalties

Applies to commercial financing transactions of $500,000 or less where proceeds are not used for personal, family, or household purposes; exempts financial institutions, Farm Credit Act lenders, real property-secured transactions, leases, and providers making five or fewer transactions annually in Connecticut

Mandates APR calculations follow federal Truth in Lending Act (Regulation Z) standards, with sales-based financing providers choosing between historical or opt-in methods for estimating APR based on projected sales volume

Requires additional "double dipping" disclosure when renewal financing pays off existing financing from the same provider, showing amounts used to pay prepayment charges or unforgiven finance charges

Authorizes the Banking Commissioner to adopt regulations and impose civil penalties of up to $2,000 per violation (or $10,000 for willful violations), with an effective date of October 1, 2021