NewYork Commercial Financing Disclosures

What are the New York State Department of Financial Services (NYDFS) disclosure requirements for certain providers of commercial financing transactions, and how are DLL and our vendor partners affected?
On February 1, 2023, NYDFS adopted a final regulation (23 NYCRR 600) with a mandatory compliance date of August 1, 2023, outlining disclosure requirements for commercial financing transactions in NY. Certain providers of commercial financing are required to give consumer-style loan disclosures to potential recipient borrowers when a specific offering of finance is extended for certain commercial transactions of $2.5 million or less.

How are DLL and our vendor partners affected?
Certain financial institutions are exempt from the Regulation, which, as a subsidiary of a financial institution, includes DLL. DLL’s exemption would cover any transactions DLL originates under referral programs, including our standard Referral, Co- Brand and Quasi-private programs. If you are a vendor partner with such programmatic structures, you would not be required to provide the disclosure as you do not originate the transaction. DLL is the originator.

However, DLL’s exemption does not extend to private-label assignment programs. For a non-exempt commercial lender who is entering into a transaction with a recipient, which may include an originating vendor or dealer under an assignment program with DLL, the non-exempt vendor/dealer will be responsible to comply with the new Regulation, including providing the appropriate disclosure prior to or at the time of document signing to such recipient (and a copy of the signed disclosure must be provided to DLL in the funding package).

The regulation can be found here: Regulations - Financial Services Final Adoption: Disclosure Requirements for Certain Providers of Commercial Financing Transactions (

The information contained herein is intended to be general in nature and is not intended to be legal, accounting, tax or other professional advice and should not be relied upon by our vendor partners. Our partners should consult their respective professional advisors for advice on this matter.