CT HB05211

Removes the $250,000 cap on commercial financing transactions subject to disclosure requirements, expanding the law to cover sales-based financing of any amount used for business purposes

Requires providers to disclose an estimated annual percentage rate (APR) calculated using either a "historical method" based on past sales/revenue data or an "opt-in method" using projected sales volume with annual reporting to the Banking Commissioner

Mandates a seven-business-day cancellation period for recipients to cancel commercial financing contracts after full execution, effective October 1, 2026

Prohibits nondisclosure provisions in commercial financing contracts that would require recipients to keep contract terms confidential, with any such provisions being unenforceable

Requires providers using the opt-in APR calculation method to submit annual reports comparing estimated APRs to actual retrospective APRs, with the Banking Commissioner authorized to require use of the historical method if deviations are unacceptable