Virginia · Regulatory Update
Business Funding in Virginia — Where Things Stand After HB 1027
Virginia's small-business base spans the federal-contractor and tech corridor of Northern Virginia, the financial-services and healthcare economy of Richmond, the port and defense logistics of Hampton Roads, and a deep agricultural and trade-contractor footprint across the Shenandoah Valley and Southside. HB 1027 — effective November 1, 2022 — requires commercial financing providers AND brokers to register with the Virginia State Corporation Commission. Commera is not currently brokering in Virginia under the standard registration path, though VA has a de minimis exemption for fewer than 5 transactions per 12-month period. This page exists so VA owners can find honest context.
Virginia 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 Virginia's commercial financing law means for you
Virginia Commercial Financing Disclosure Law (HB 1027)
Effective: November 1, 2022
Citation: Va. Code § 6.2 Chapter 22.1 (HB 1027)
Virginia requires commercial financing providers AND brokers to register with the Virginia State Corporation Commission. The act applies to non-bank providers and brokers of sales-based financing, including merchant cash advances, and pairs registration with disclosure obligations on the provider side. The disclosure must include the total amount of financing, the finance charge in dollars, the term, the payment amount and frequency, and the prepayment policy. Brokers facilitating these transactions must register independently of the provider, with a de minimis exemption available for those completing fewer than 5 transactions per 12-month period.
Applicability
Applies to commercial financing transactions with businesses located in Virginia. Banks and bank-affiliated entities are exempt. Brokers facilitating fewer than 5 transactions per rolling 12-month period may qualify for a de minimis exemption — but the threshold is low and most active brokers register fully.
What you should expect
- Most established MCA funders have registered with the VA SCC or paused new VA originations
- Brokers facilitating VA deals must also be registered (or qualify under the de minimis exemption)
- Disclosure obligations on the provider mirror the structure of other state laws: total amount, finance charge, term, payment schedule
- VA SCC enforcement and registration guidance has been in place for several years and is more mature than newer states
Plain-English context, not legal advice. Verify any VA-specific compliance question with qualified counsel.
Common questions from Virginia owners
Is a merchant cash advance legal in Virginia?
Yes — MCAs are legal for commercial purposes in Virginia. As of November 1, 2022, providers and brokers must register with the Virginia State Corporation Commission under HB 1027 (Va. Code §6.2 Ch. 22.1). The law adds a registration layer on top of standard commercial-financing disclosure requirements.
Why isn't Commera currently brokering in Virginia?
Virginia's broker-registration requirement is independent of the provider's registration — we'd need our own VA SCC registration before legally facilitating VA transactions at any meaningful volume. VA does offer a de minimis exemption for fewer than 5 transactions per 12-month period, but that's not a sustainable basis for routine matching. Until we complete full VA registration, we're staying on the sidelines for VA applications.
What should a Virginia business owner do in the meantime?
Options not materially affected by VA's broker registration framework: SBA loans (federally regulated, exempt), traditional bank lines of credit (bank-issued financing is exempt), and direct relationships with VA-registered commercial financing providers. If you'd like a referral, email contact@commerafunding.com — we can sometimes route to a VA-registered funder directly.
When will Commera serve Virginia?
When our broker registration with the VA SCC is complete and we've verified our funder partners are also registered. We don't have a hard date.
Virginia business owner? Get in touch.
We can sometimes refer to a partner currently brokering in Virginia under the new framework. Email us — no fees, no pitch.
Email contact@commerafunding.com