June 23, 2026
Last month, we provided an alert on Vermont House Bill 648 describing how the bill would impose significant new licensing requirements, disclosure obligations, and substantive restrictions exclusively on factoring transactions and sales-based financing transactions. On June 16, 2026, Vermont Governor Phil Scott signed that bill into law, despite industry efforts to obtain a veto. As a result, H.B. 648 will become effective on July 1, 2027.
Because the law focuses exclusively on factoring and sales-based financing but ignores commercial loans, H.B. 648 will likely result in reducing options for more flexible forms of financing for Vermont businesses seeking working capital in amounts of less than $1 million.