Responsible Business Lending Coalition Applauds Court Decision Upholding California’s Small Business Lending Regulation
For immediate release: December 7, 2023
CONTACT:
Cassie Mills | VP, Communications
(202) 289-6271 | [email protected]
Washington, D.C., December 7, 2023 -- Statement from Bianca Blomquist, California Policy Director for Small Business Majority on behalf of the Responsible Business Lending Coalition, in response to California ruling that upholds state regulation requiring the disclosure of APR in small business financing products
“The Responsible Business Lending Coalition (RBLC) applauds U.S. District Judge R. Gary Klausner’s decision to rule in favor of the California Department of Financial Protection & Innovation in the case of Small Business Finance Association v. Clothilde Hewlett. This ruling upholds the state’s recently adopted commercial financing disclosure regulations that require companies to disclose key terms and costs for small business finance products, including annual percentage rate (APR), to help small business owners select the best financing option for their needs.
Access to responsible capital is a top concern for small business owners, and California’s small business financing disclosure law is helping to ensure that borrowers can make apples-to-apples comparisons when seeking financing. This is why the RBLC was proud to join an amicus brief, alongside Public Counsel, U.C. Berkeley Center for Consumer Law & Economic Justice, California Association for Microenterprise Opportunity (CAMEO), and the Office of Kat Taylor, that demonstrates the importance of California lawmakers’ efforts to protect California small business borrowers from opaque and unfair lending practices.
Judge Klausner’s ruling will ensure that all financing providers are required to disclose APR to California’s small business borrowers, which will promote a healthy business financing market that rewards providers for offering the most innovative and affordable products. This will empower business owners to comparison shop and lower prices for small business capital, supporting a thriving economy for main streets across California.”
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About the Responsible Business Lending Coalition
The Responsible Business Lending Coalition (RBLC) is the leading cross-sector voice on small business financial protection. The coalition includes nonprofit and for-profit CDFIs, fintechs, investors, and small business advocates that share a commitment to innovation in small business lending and serious concerns about the rise of irresponsible small business lending. The coalition created the Small Business Borrowers' Bill of Rights, the first cross-sector consensus on the rights that small business owners deserve and what financing providers, brokers and lead generators can do to uphold those rights. Over 110 small business lenders, brokers and lead generators, and advocacy organizations have endorsed these standards. Members of the Responsible Business Lending Coalition include Accion Opportunity Fund, the Aspen Institute, BlueVine, Community Investment Management, LendingClub, National Association for Latino Community Asset Builders (NALCAB), National Community Reinvestment Coalition (NCRC), Opportunity Finance Network, and Small Business Majority. For more information, visit www.borrowersbillofrights.org.
The Responsible Business Lending Coalition (RBLC) is the leading cross-sector voice on small business financial protection. The coalition includes nonprofit and for-profit CDFIs, fintechs, investors, and small business advocates that share a commitment to innovation in small business lending and serious concerns about the rise of irresponsible small business lending. The coalition created the Small Business Borrowers' Bill of Rights, the first cross-sector consensus on the rights that small business owners deserve and what financing providers, brokers and lead generators can do to uphold those rights. Over 110 small business lenders, brokers and lead generators, and advocacy organizations have endorsed these standards. Members of the Responsible Business Lending Coalition include Accion Opportunity Fund, the Aspen Institute, BlueVine, Community Investment Management, LendingClub, National Association for Latino Community Asset Builders (NALCAB), National Community Reinvestment Coalition (NCRC), Opportunity Finance Network, and Small Business Majority. For more information, visit www.borrowersbillofrights.org.
