[TheUnderwritingProdigy]

Well, the good news it that both VA and UT laws are "forgiving" with regards to smaller operations and licenses. In fact, California also allows smaller operations to be unlicensed, as long as they were not involved with 5 commercial transactions in the year.

Apparently California's exception was "sunsetted" https://www.jdsupra.com/legalnews/ex...ender-8086052/ but it came back https://www.consumerfinanceandfintec...-month-period/

(It has to be that way, it puts an unfair barrier in for startup shops that most states would never allow.)

Hopefully some funders will "brokers" who are licensed and are pass-through entities who will pay out sub-brokers, just with a different 1099 at EOY.

BTW, on another note, Virginia's law is interesting: "The provider must pay any arbitration expenses or fees and any other expenses or fees incurred in the conduct of the arbitration proceedings." So if there's a default, you can't sue the business owner and throw your lawyer fees onto them as a scare tactic anymore. That may make some of the MCA providers less aggressive, which is overall good for the business owner, and MCA providers may just have to get used to lower profits.

Realistically, if we're not able to litigate against anyone in VA due to this new law, I don't see us funding in that state any longer.