An obscure sector of the lending industry has emerged as the leading capital source for small enterprises across the nation, but regulatory changes may be on the horizon.<\/p>\n
Connecticut had previously granted merchant cash advance companies significant regulatory authority that set them apart from traditional lenders. However, state officials are now reconsidering these special powers amid growing concerns about industry practices.<\/p>\n
The merchant cash advance industry operates differently from conventional business loans, offering quick funding in exchange for a percentage of future sales. While this arrangement can provide immediate relief for cash-strapped businesses, critics argue the terms can become predatory.<\/p>\n
The potential regulatory shift in Connecticut could signal broader changes in how states oversee this rapidly expanding corner of business financing. Small business owners who have relied on these funding sources may soon see different terms and protections.<\/p>\n","protected":false},"excerpt":{"rendered":"
A shadowy segment of the lending industry has become the top funding source for small enterprises nationwide. Connecticut previously granted these financial companies significant authority, but lawmakers may soon reconsider those powers.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[834],"tags":[],"class_list":["post-42180","post","type-post","status-publish","format-standard","hentry","category-business"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pbtNqq-aYk","jetpack-related-posts":[{"id":6126,"url":"https:\/\/tvdelmarva.com\/wp\/ftc-case-leads-to-permanent-ban-against-merchant-cash-advance-owner-for-deceiving-small-businesses-seizing-personal-and-business-assets\/","url_meta":{"origin":42180,"position":0},"title":"FTC Case Leads to Permanent Ban Against Merchant Cash Advance Owner for Deceiving Small Businesses, Seizing Personal and Business Assets","author":"jmayfield","date":"October 30, 2023","format":false,"excerpt":"As a result of a Federal Trade Commission lawsuit, Jonathan Braun, who controlled small-business funding company RCG Advances, will face a permanent ban from the merchant cash advance and debt collection industries. A federal court issued summary judgment\u00a0in favor of the FTC in the case along with a permanent injunction\u00a0against\u2026","rel":"","context":"In "News"","block_context":{"text":"News","link":"https:\/\/tvdelmarva.com\/wp\/category\/news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7106,"url":"https:\/\/tvdelmarva.com\/wp\/court-enters-20-3-million-judgment-in-ftc-case-against-merchant-cash-advance-operator-jonathan-braun-for-deceiving-small-businesses-and-unlawfully-seizing-assets\/","url_meta":{"origin":42180,"position":1},"title":"Court Enters $20.3 Million Judgment in FTC Case Against Merchant Cash Advance Operator Jonathan Braun for Deceiving Small Businesses and Unlawfully Seizing Assets","author":"jmayfield","date":"February 14, 2024","format":false,"excerpt":"As a result of a Federal Trade Commission lawsuit, a federal court has entered a judgment requiring merchant cash advance operator Jonathan Braun to pay $20.3 million in monetary relief and civil penalties. 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The changes mean travelers without airline credit cards will earn fewer rewards,\u2026","rel":"","context":"In "Business"","block_context":{"text":"Business","link":"https:\/\/tvdelmarva.com\/wp\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/03\/news-1773399060886.jpg?fit=450%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":39929,"url":"https:\/\/tvdelmarva.com\/wp\/major-banks-set-to-win-big-under-new-federal-capital-rules-trading-giants-favored\/","url_meta":{"origin":42180,"position":3},"title":"Major Banks Set to Win Big Under New Federal Capital Rules, Trading Giants Favored","author":"Admin","date":"March 20, 2026","format":false,"excerpt":"A new federal proposal would reduce capital requirements for major U.S. banks by 4.8%, freeing up billions for lending and buybacks. 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