Failure to Pass Legislation Raising Interest Rate Caps in Colorado Welcome News for Small Businesses
Statement by Tim Gaudette, Colorado Outreach Manager for Small Business Majority, on yesterday’s House vote of SB16-185, legislation that would have allowed for higher interest rates on certain loans
Yesterday House lawmakers voted down SB16-185, legislation seeking to raise the interest rate cap on supervised consumer loans, which is good news for Colorado’s entrepreneurs. Small Business Majority’s scientific opinion polling found Colorado small business owners overwhelmingly oppose raising the interest rate cap on consumer loans.
In fact, 90 percent of Colorado small business owners said they opposed state legislation that would allow lenders to increase the interest they can charge on a $3,000 consumer loan from 28 percent a year to 30 percent a year and allow increases based on inflation for each subsequent year. According to the poll, 62 percent of the small business respondents said they believe small business owners would consider taking a consumer loan of $1,000 to $10,000, the loan size typically offered by such lenders.
Additionally, more than three-quarters (76 percent) of small business owners said they would be less likely to vote for a state representative who voted to increase the maximum interest rates lenders in Colorado can charge. What’s more, 74 percent of small business owners agreed that higher rates mean less profit, difficulty creating new jobs and less money for small business owners or their employees to spend at other small businesses.
Small business owners need loans with reasonable interest rates to get off the ground and grow. Raising interest rates in Colorado would threaten the ability of our small businesses to create jobs and compete with businesses in other states. We’re glad House lawmakers voted against this legislation.
About Small Business Majority
Small Business Majority was founded and is run by small business owners to focus on solving the biggest problems facing small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong economy. We regularly engage our network of 45,000 small business owners and more than 2,000 business organizations, along with a formal strategic partnership program of more than 125 business organizations, enabling us to reach more than 500,000 entrepreneurs. 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, including access to capital, taxes, healthcare, retirement, entrepreneurship and workforce development. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.