If you’ve been following news out of California’s state legislature, you may have heard about a proposed bill aimed at regulating commercial debt settlement services. At first, this raised alarms for business owners and industry professionals—especially those involved with Merchant Cash Advances (MCAs), factoring, and asset-based financing.
But there’s been a major development.
👉 As of July 11, 2025, the bill has been amended to apply to commercial loans only—and now explicitly excludes MCAs, factoring arrangements, and lease financing.
Here’s what that means, why it matters, and how it impacts business owners like you.
What Changed in the California Debt Settlement Bill?
Originally, the bill proposed sweeping oversight over all types of commercial financing, including MCAs and other alternative funding structures. That would have placed new legal burdens on companies like ours that help small businesses navigate and negotiate debt relief.
But after industry feedback and concerns, lawmakers updated the language to be more specific.
Now, the bill ONLY applies to traditional commercial loans.
The following are excluded:
- Merchant Cash Advances (MCAs)
- Accounts receivable purchase transactions
- Factoring agreements
- Asset-based lending
- Lease financing arrangements
In short: MCA settlements are not affected by this bill.
Why This Matters for Business Owners with MCAs
MCAs are still one of the most common ways small businesses access fast capital—but they come with steep repayment terms and relentless daily payments. When things get tight, MCA debt can quickly become unmanageable.
If you’re currently working with a company to restructure or reduce your MCA payments, this new amendment does not restrict your access to support.
That means:
✔ You can still seek attorney-supported debt relief for MCA balances
✔ You’re not limited by loan-only regulations
✔ You maintain the flexibility to pursue settlements tailored to your specific funding agreements
At LoanFixer, we’ve helped hundreds of business owners legally reduce their MCA obligations—even in challenging financial climates like this one.
What We’re Seeing Now
Here’s what we know from experience:
- Over $2.1 billion in business debt resolved
- MCA payments reduced by up to 70% in many cases
- Business owners regaining control of their operations in as little as 6–18 months
- 1-on-1 consultations with zero upfront fees — and zero pressure
Our Take
This update from California is a win for flexibility. It keeps the door open for real negotiation and real solutions for businesses struggling with non-loan financing like MCAs.
If you’ve felt stuck or overwhelmed by your daily payment schedule, you’re not alone. The rules may be changing—but your options aren’t closing.
What You Can Do Next
If you’re dealing with stacked MCA loans, daily withdrawals, or constant pressure from funders — now is the time to take action.
📞 Book a FREE consultation today with one of our debt relief specialists.
We’ll:
- Review your funding agreements
- Explain your rights and options
- Help you understand how this new bill impacts your situation (if at all)
- And map out a plan to lower payments and protect your cash flow
LoanFixer is here to help — legally, calmly, and with your business’s future in mind.
