Protect small business borrowers by ensuring transparent and fair lending practices
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 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. Small businesses deserve to safely shop for capital without being concerned about exorbitant APR and unfair or opaque loan terms.