Illinois Again Fails to Advance Lending Transparency Bill to Protect Small Businesses

“Now that the 2025 legislative session has come to an end, it’s important to call out the fact that Illinois lawmakers once again let small businesses down by failing to adopt legislation that would have helped ensure fair lending practices for small businesses and combat predatory commercial lending though clear disclosure requirements in commercial loan agreements. While traditional lenders are required to be clear and transparent, the alternative lenders on which many small businesses rely for quick but essential capital are not subject to most state and federal regulations, leaving small firms vulnerable to opaque fees and other charges that can burden a small business with crippling debt in a matter of weeks. Without transparent terms like APR, it is often impossible for small business owners to know the true cost of the loan. 

We know that some lawmakers understand the importance of this issue, and we applaud them for their allyship. But we need more policymakers to recognize that the majority of small business owners nationwide support legislation that requires clear disclosure of APR in commercial loans because small businesses benefit from greater lending transparency. Let’s hope that Illinois finally gets it right next year and protects small businesses by creating strong protections for entrepreneurs seeking commercial loans.”