Senate Bill No. 335, known as the Louisiana Commercial Financing Disclosure Law, establishes regulations for commercial financing transactions in Louisiana, effective January 1, 2025. The bill introduces Chapter 4-C to 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 detailing transaction terms at or before consummation and outlines specific exemptions, including transactions involving federally insured depository institutions and those exceeding $500,000. The bill also prohibits brokers from collecting advance fees before transaction closure and outlines deceptive practices that are not allowed.

The enforcement of the law is under the jurisdiction of the attorney general, who can handle complaints and initiate legal proceedings for violations. Penalties for non-compliance include fines ranging from $500 to $1,000 per incident, with total fines capped at $20,000 and $50,000 for aggregated violations. The bill clarifies that violations do not affect the validity of the underlying financing transactions and allows for a private right of action for individuals or entities affected by noncompliance. The legislation is set to take effect on August 1, 2024.