Scientific Opinion Poll: Small Business Owners Support Policies Promoting Responsible Lending
Small employers back legislation that would increase small business lending by credit unions as well as a ‘truth in lending’ act to ensure loan rates and terms are consistent and transparent
Washington, DC—A scientific opinion poll released today found most small business owners support a number of policies that could help increase the availability of traditional loans and make alternative lending sources safer.
The survey, conducted by Chesapeake Beach Consulting on behalf of Small Business Majority, found more than 3 in 4 (77 percent) small business owners approve of a policy that would increase the amount of small business lending done by credit unions by lifting the cap on the amount of loans they can underwrite. What’s more, small businesses support measures that would protect them from predatory lending practices: An overwhelming 87 percent of small business owners support a “truth in lending” act for small business lending to ensure loan rates and terms are both consistent and transparent.
Additionally, more than 6 in 10 (62 percent) small businesses support policies like the Community Reinvestment Act, which requires banks to invest in low-income neighborhoods.
“I’m thinking about applying for a loan that would help me grow my business and make it more competitive, but I have very few affordable or reliable options,” said Sharon Levy, owner of Taking Tea InStyle LLC in Princeton, N.J. “Traditional banks have a lot of requirements that many small businesses just can’t satisfy, while online lenders are largely unregulated and can take advantage of small businesses that are desperate for capital. Small business owners simply don’t have enough good lending options, which is why we need better policies in place to give small businesses a level playing field and a safer environment in which to conduct business.”
The poll found small businesses also support institutions that protect borrowers. In fact, three in four small business owners support the Consumer Financial Protection Bureau, which oversees mortgages, credit cards and other consumer financial products and services.
“Far too many entrepreneurs have difficulty obtaining the capital they need to start and expand their business,” said John Arensmeyer, Small Business Majority Founder & CEO. “When they are able to get financing, they need that capital to be safely and responsibly administered. As these poll results show, small business owners are strongly supportive of policies and institutions that increase the availability of small business loans from traditional sources like small banks and credit unions, while also shielding them from predatory lending practices.”
The survey reflects interviews of 500 small business owners nationwide with 1-100 employees. It has a margin of error of +/- 4.4 percent.
For the full poll report, please visit: http://smallbusinessmajority.org/our-research/access-capital/small-business-owners-support-policies-promoting-access-responsible-lending
About Small Business Majority
Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of an inclusive, equitable and diverse economy. We actively engage our network of more than 55,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.