The "Commercial Financing Disclosure Act" is a proposed bill that aims to enhance transparency in commercial financing transactions in South Carolina by adding Chapter 81 to Title 39 of the South Carolina Code of Laws. The bill defines key terms related to commercial financing, including "accounts receivable purchase transaction," "broker," and "commercial loan," and outlines the types of transactions to which the provisions apply. It mandates that providers of commercial financing must deliver written disclosures detailing the terms of the financing transaction, including the total amount of funds provided, any fees deducted, and payment details. The bill also establishes prohibitions for brokers, such as the collection of advance fees and the use of misleading representations.

Enforcement of the new regulations will be under the exclusive authority of the Attorney General, who can receive complaints, seek voluntary compliance, and initiate legal proceedings. Violations of the act can result in fines, with specific penalties for repeat offenses. Notably, the act does not create a private right of action for individuals or entities based on compliance or noncompliance. The provisions of this act will take effect on January 1, 2026, and will not apply to certain exempt entities and transactions, including federally insured depository institutions and transactions exceeding $500,000.