Wednesday Aug 20, 2025
Loan Stars Episode 5: Breaking Down Texas's New Business Finance Laws with Kate Fisher
In this episode of the Loan Stars Podcast, hosted by Celeste Deal Maunoir, the Chief Sales Officer at ARF Financial, and co-hosted by Bob Lapidus, ARF’s Senior Vice President General Counsel, the focus is on Texas House Bill 700. Signed into law by Governor Greg Abbott in June, this bill introduces significant regulatory shifts in commercial sales-based financing transactions, commonly known as Merchant Cash Advances (MCA). This makes Texas the 11th state to adopt a commercial finance disclosure law. The podcast discusses the unique aspects of the Texas bill, such as prohibiting most ACH debits, banning confessions of judgment, and necessitating a validly perfected security interest in a recipient's deposit account for auto-debit mechanisms. The guest speaker, Kate Fisher from Hudson Cook, LLP, provides her expertise on the challenges and implications for both financing providers and businesses in Texas. The discussion also touches on broader regulatory trends and their potential impact on the availability of capital for small businesses and the practices of commercial loan brokers.
2 months ago
Hi Jim! Thank you for sharing this episode. We have received so many questions on the impact of HB700 that we believed it was worth dedicating an entire episode to it. While we do not offer merchant cash advances at ARF Financial, it is still a quick product that Referral Partners regularly recommend to their merchants. Anything that affects our Partners will eventually affect us and this one is a doozy so we all have to learn more about it to help merchants make informed decisions. We will also be covering this topic on an August 10th webinar with our CEO as some MCA lenders have suspended operations in Texas. This is already making waves in the lending space so come with any questions you may have! Again thanks for sharing this episode!
2 months ago
I was aggravated at first because i find people i don’t deal with this, but i do. So listen to all of it for yourself and clients I forwarded it to BLB and Rick at Torro Yes it is that important. Keep the faith people we are a community.