On April 11, the Virginia governor signed HB 1027, which requires sales-based financing providers to register with the State Corporation Commission and provide certain disclosures to a recipient at the time of extending a specific offer of sales-based financing. Exempt from the bill’s provisions are financial institutions and any “person, provider, or broker that enters into no more than five sales-based financing transactions with a recipient in a 12-month period” or enters a single sales-based financing transaction greater than $500,000. With respect to the bill’s disclosure requirements, sales-based financing providers must include details related to the total amount financed, finance charges, total repayment amount, and any other potential fees and charges not included in the finance charge. Additionally, an updated disclosure must be provided should the recipient choose to pay off or refinance the sales-based financing prior to full repayment. The bill also provides that any cause of action related to a contract or agreement for sales-based financing shall be brought in the Commonwealth, and that arbitration proceedings must be in the jurisdiction where the recipient’s principle place of business is located. Sales-based financing contracts are also prohibited from containing a confession by judgment or any similar provision. The bill provides the attorney general with enforcement authority, as well as the ability to seek damages and other relief, including reasonable attorneys’ fees and costs, as allowed by law. The Commission will adopt regulations to implement the bill’s provisions. The bill’s provisions apply to sales-based financing contracts or agreements entered into on or after July 1.