The CASH ACT: The Journey to Federal Preemption of State Disclosure Laws

Public Policy & Regulation attorney Elizabeth Craddock authored an article for IFA Commercial Factor discussing the impact of financial state disclosures laws on the factoring industry. These laws have proliferated since California first enacted one in 2018, causing significant industry challenges across nearly half the states. To combat the piecemeal approach, the American Factoring Association (AFA) is advocating for a federal law, the Capital Access for Small Businesses Harmonization Act (CASH ACT), aimed at standardizing disclosures and pre-empting state laws to simplify compliance for factors. The proposed CASH ACT would provide much-needed clarity and uniformity, reducing the risk of litigation for factoring companies and ensuring continued financial support for small businesses.

READ: The CASH ACT: The Journey to Federal Preemption of State Disclosure Laws