Connecticut · Regulatory Update
Business Funding in Connecticut — Where Things Stand After §36a-861
Connecticut's small-business base sits between Hartford's insurance and financial-services hub, the New Haven biotech and university corridor, the Stamford / Fairfield County corporate belt, and a long tail of trade contractors and independent retailers across the rest of the state. As of July 1, 2024, commercial financing providers and brokers operating in Connecticut must register with the Department of Banking under the Commercial Financing Provider/Broker Registration Act. Commera is not currently brokering in Connecticut while we evaluate the registration framework. This page exists so CT owners can find honest context.
Connecticut owner? Email us at contact@commerafunding.com — we can sometimes refer to a partner currently working through the new framework.
By Filip Kozina · Co-Founder, Commera Funding
Reviewed June 8, 2026
What Connecticut's commercial financing law means for you
Connecticut Commercial Financing Provider/Broker Registration Act
Effective: July 1, 2024
Citation: Conn. Gen. Stat. § 36a-861 et seq.
Connecticut requires commercial financing providers AND brokers to register with the Connecticut Department of Banking before facilitating commercial financing transactions in the state. The act applies to non-bank providers of sales-based financing, including merchant cash advances, and pairs registration with disclosure obligations on the provider side. Registration is annual and includes a fee plus information about ownership and operational presence.
Applicability
Applies to commercial financing transactions where the recipient business is located in Connecticut. Banks and bank-affiliated entities are exempt. Brokers facilitating these transactions to CT businesses must register independently of the provider.
What you should expect
- Most established MCA funders have either registered with the CT Department of Banking or paused new Connecticut originations
- Brokers facilitating CT deals must also be registered — not just the provider
- Disclosure obligations on the provider mirror the structure of other state laws: total amount, finance charge, term, payment schedule
- Expect ongoing rulemaking as the Department of Banking shapes enforcement priorities
Plain-English context, not legal advice. The Connecticut framework is still settling in. Verify any CT-specific compliance question with qualified counsel.
Common questions from Connecticut owners
Is a merchant cash advance legal in Connecticut?
Yes — MCAs are legal for commercial purposes in Connecticut. As of July 1, 2024, providers and brokers must register with the CT Department of Banking under Conn. Gen. Stat. §36a-861. The law adds a registration layer on top of the standard commercial-financing disclosure requirements.
Why isn't Commera currently brokering in Connecticut?
Connecticut's registration requirement applies to brokers independently of providers, plus foreign-entity qualification with the CT Secretary of State. We're a small founder-run broker and we don't take state registrations on lightly — we want our compliance posture to be clean before we accept CT applications, not after. Until our CT registration is in place, we're staying on the sidelines.
What should a Connecticut business owner do in the meantime?
Options not materially affected by the CT registration framework: SBA loans (federally regulated, exempt), traditional bank lines of credit (bank-issued financing is exempt), and invoice factoring (treated differently from MCA under CT law). If you'd like a partner referral, email contact@commerafunding.com — we can sometimes route to a CT-registered funder directly.
When will Commera serve Connecticut?
When our broker registration with the CT Department of Banking is complete and we've verified our funder partners are also registered or properly exempt. We don't have a hard date.
Connecticut business owner? Get in touch.
We can sometimes refer to a partner currently brokering in Connecticut under the new framework. Email us — no fees, no pitch.
Email contact@commerafunding.com