Protect small business borrowers by ensuring transparent and fair lending practices
The pandemic has underscored the importance of accessible and affordable capital for small businesses like mine. It’s a critical component to maintaining my business’s operations and growth. That’s precisely why all small businesses should be protected as we search for capital.
Currently the federal Truth in Lending Act (TILA) requires that consumer creditors disclose critical financing information, including annual percentage rate (APR), in a clear and comparable format. However, Congress has yet to extend these disclosure requirements to small business loans and other credit products, which means small businesses like mine are vulnerable to irresponsible lenders. As small businesses recover from the pandemic, it should go without saying that transparent lending shouldn’t be up for debate. I deserve to safely shop for capital without being concerned about exorbitant APR and unfair or opaque loan terms.
Small businesses are America’s backbone, employing nearly half of all employees. Our importance to the economy has been highlighted during the pandemic, and it’s precisely why we deserve these essential safeguards. I urge you to help protect small businesses like mine by supporting legislation to extend Truth in Lending Act disclosures to small business loan products.