California Small Businesses Celebrate Court Ruling that Defends the State’s Small Business Lending Transparency Regulation
Statement from Bianca Blomquist, California Policy Director for Small Business Majority, on California judgment that upholds state regulation requiring the disclosure of APR in small business financing products
“We are thrilled with U.S. District Judge R. Gary Klausner’s decision to rule in favor of the California Department of Financial Protection & Innovation in the case of ‘Small Business Finance Association v. Clothilde Hewlett,’ upholding state efforts that require annual percentage rate (APR) disclosures in small business finance products.
Access to responsible capital is a top concern for small business owners, and California’s small business truth in lending law is helping to ensure that borrowers can make apples-to-apples comparisons when seeking financing. This is why Small Business Majority was proud to join an amicus brief as a member of the Responsible Business Lending Coalition (RBLC), alongside other small business advocates and consumer experts, providing thorough evidence on the importance of protecting California small business borrowers from predatory lending practices.
This ruling is a critical step toward empowering small business owners with the tools they need to make informed decisions when seeking financing providers and products. We applaud the judge’s decision and hope more states implement small business truth in lending and transparency laws that require all financing companies to disclose the full cost and terms of their products.”
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About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.