Access to capital

On April 3, Small Business Majority, alongside Fair Financial Service Project Texas Appleseed, The Responsible Business Lending Coalition, The Texas Association of Community Development Corporations and Business and Community Lenders, submitted a public comment regarding a rulemaking proposal posted in the Texas Register, proposing amendments to 7 TAC §§86.301 - 86.307, 86.310 - 86.313, 86.320 - 86.322. 

Small Business Majority network member Paloma Corona, owner of Little Sprouts Language Immersion Preschool in Los Angeles testified before California State Assembly Committee on Banking and Finance to share her experience with predatory loans and ask the Committee to support AB 2116, which proposes to expand the California Consumer Financial Protection Law (CCFPL) to protect small businesses from abusive commercial financing practices. 

On April 28, Small Business Majority led a coalition of nearly 100 local, state and national organizations in a letter to Small Business Committee Ranking Members Sen. Ed Markey (D-MA) and Rep. Nydia Velázquez (D-NY) to endorse the Investing in the American Dream Act. The legislation seeks to overturn SBA guidance issued in February that restricts loan access for businesses without 100% U.S. citizenship ownership. Instead, it would codify previous standards allowing businesses to qualify for 7(a), 504, Microloan, and Surety Bond programs if they are based in the U.S.

On March 27, Mike Horn submitted written testimony in support of SB-881 to the Maryland House Economic Matters Committee. This legislation would would force non-bank lenders to transparently disclose the true APR for small business loans, which is the only established metric that enables borrowers to make apples-to-apples comparisons between different financing products.

This fact sheet highlights the critical role of affordable, responsible capital in helping small businesses start, grow and succeed—while underscoring the persistent barriers many entrepreneurs face in accessing financing. Drawing on national survey data, it reveals that a majority of small business owners struggle to obtain funding, with disparities particularly pronounced for minority-owned businesses.

Small businesses need access to fair, transparent capital to grow, but many—especially women- and minority-owned businesses—still face predatory and opaque lending practices. This fact sheet highlights key challenges in the small business lending market and outlines policy solutions to expand protections, improve transparency and ensure equitable access to responsible financing.

On March 12, Small Business Majority, alongside more than 100 state and national organizations serving small businesses nationwide, sent a letter to the Small Business Administration (SBA) opposing the agency’s February 2 policy notice that bars small businesses not 100% owned by U.S. citizens or nationals from accessing SBA-backed loan programs.

On March 10, Small Business Majority Vice President of State Policy & Advocacy Awesta Sarkash submitted a letter in support of HB26-1003 to the Coloraod Senate Finance Committee. This legislation would make improvements to the Colorado Loans to Increase Mainstreet Business Economic Resiliency (CLIMBER) Loan Fund while also supporting the Colorado Startup Loan Fund.