Senate Bill No. 335, known as the Louisiana Commercial Financing Disclosure Law, establishes regulations for commercial financing transactions in Louisiana, set to take effect on January 1, 2025. The bill introduces Chapter 4-C to Code Title VII of Code Book III of Title 9 of the Louisiana Revised Statutes, defining key terms such as "accounts receivable purchase transaction," "broker," "commercial loan," and "provider." It requires providers to deliver written disclosures at the time of consummation, detailing essential financing terms, including the total funds provided, any fees deducted, and the payment structure. The bill also specifies exemptions for certain transactions, such as those involving federally insured depository institutions and those exceeding $500,000, while prohibiting brokers from collecting advance fees and engaging in deceptive practices.

The enforcement of the law is assigned to the attorney general, who can impose fines for violations, starting at $500 per incident and escalating to $1,000 for repeat offenses after a written notice. The legislation does not create a private right of action for individuals against entities for compliance or noncompliance with its provisions. Additionally, the bill mandates that only one disclosure is necessary for each financing facility, with no further disclosures required for modifications. The law aims to enhance transparency in commercial financing transactions while ensuring that brokers adhere to ethical practices.