Responsible Business Lending Coalition Commends Small Business Lending Disclosure Act of 2021

WASHINGTON, Nov. 18, 2021 /PRNewswire/ -- The Responsible Business Lending Coalition (RBLC) a?? the leading cross-sector small business financing coalition a?? commends the introduction today of the Small Business Lending Disclosure Act of 2021. The Act will establish common-sense transparency standards in small business financing at a critical time of recovery for Main Street. The RBLC thanks House Small Business Committee Chairwoman Nydia VelA?zquez and Senator Bob Menendez for exemplifying true leadership and commitment to small businesses by sponsoring this bicameral legislation. We also applaud House Financial Services Committee Chairwoman Maxine Waters, House Subcommittee on Consumer Protection and Financial Institutions Chairman Ed Perlmutter, Senate Banking, Housing and Urban Affairs Committee Chairman Sherrod Brown, and Senate Small Business and Entrepreneurship Committee Chairman Ben Cardin for serving as lead cosponsors on the bill. Today, the federal Truth in Lending Act ensures transparency in consumer lending but does not apply to small business financing. Without the transparent disclosure of the Annual Percentage Rate (APR) that we take for granted in loans for homes, cars, credit cards and personal lending, a range of confusing or misleading ways of disclosing the true cost of financing has emerged in small business credit markets. This lack of transparency can make it difficult or impossible for small business owners to compare their financing options effectively, and can conceal APRs as high as 358%. Selecting an unaffordable financial product could be the difference between success and failure for businesses re-emerging from COVID-19 and for entrepreneurs just starting out. By enabling small business owners to identify which loan or advance may be affordable for them, and by bringing transparent price competition to small business financing, we project that the Small Business Lending Disclosure Act of 2021 will bring over $4.7 billion in savings for nearly one million small businesses annually, including hundreds of millions in savings for approximately 400,000 minority-owned small businessesa??a substantial sum that can further propel our national economy towards full recovery. The Responsible Business Lending Coalition, along with 20 local, state, and national business organizations and stakeholders, urges lawmakers from both sides of the aisle to pass this historic legislation in support of our small businesses, local communities, and our national economy.RBLC Member Federal TILA Endorsement Quotes
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