In what could be an influential move for the corporate legal industry, Georgia has enacted its own Commercial Financing Disclosure Law, otherwise known as the CFDL, on a par with established laws in the states of California, Florida and New York. The Georgia CFDL is specifically applicable to covered “Commercial Financing Transactions”.
Strikingly, Georgia’s new law will come into effect on January 1, 2024. From this date, any transaction that equals to or is below the amount of $500,000, and that is originated by a covered “Provider”, will be subject to the law. This will undoubtedly see an influx of legal and financial activity in preparation for the mandatory compliance date.
This information has been released by the legal firm Buchalter, which suggests that preparations in Georgia are already underway by firms grappling with the implications of this regulatory change.
For more specific details regarding the Georgia Commercial Financing Disclosure Law, I would recommend a visit to a comprehensive write-up by JD Supra.
Overall, the enactment of the Georgia CFDL is a prime example of the continuing evolution of commercial financing regulations. Corporations and legal firms, not just in Georgia, but across the United States, will need to keep abreast of these changes and adjust their operations and legal strategies accordingly.