Responsible Business Lending Coalition Applauds CFPB Director Rohit Chopra's Comments on Importance of Transparent Commercial Financing Disclosures
For immediate release: April 28, 2022
CONTACT:
Caitlin McShane
(415) 225-8855 | [email protected]
April 28, 2022 -- Statement by Amyra Hasan, on behalf of the Responsible Business Lending Coalition, regarding Director Rohit Chopra’s testifying before the Senate Banking Committee and the House Financial Services Committee on the Consumer Financial Protection Bureau’s semi-annual report to Congress
As a coalition focused on addressing the rise of irresponsible practices in the commercial lending industry, the Responsible Business Lending Coalition (RBLC) is pleased by Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra’s remarks on the importance of transparent small business financing disclosures during this week’s House Financial Services Committee and Senate Banking Committee hearing: Consumers First: Semi-Annual Report of the Consumer Financial Protection Bureau.
Director Chopra said ”Laws work best when they are easy to understand, easy to follow, and easy to enforce” in his prepared statement to the House Financial Services Committee. We are thrilled to see the Director continue to build on his strong track record of prioritizing transparency for consumers and small businesses. Small businesses are particularly vulnerable to non-transparent and misleading financing options.
Confusing ways of explaining the true cost of financing have emerged in small business financing because providers are not required to disclose the Annual Percentage Rate (APR), which we take for granted in mortgages, auto loans, credit cards and personal lending. This lack of transparency makes it difficult and even impossible for small business owners to effectively compare their financing options.
By providing entrepreneurs the details necessary to identify the best products for their business and by encouraging greater price competition in the industry, the Small Business Lending Disclosure Act of 2021--introduced by Representative Nydia Velázquez and Senator Bob Menendez--is projected to save small business owners across the country more than $4.7 billion annually.
We commend the committees and Director Chopra for supporting this critical small business issue and urge lawmakers from both sides of the aisle to advance this legislation swiftly.
###
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, Community Investment Management, Funding Circle, LendingClub, Opportunity Finance Network, Small Business Majority, and the Aspen Institute. 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, Community Investment Management, Funding Circle, LendingClub, Opportunity Finance Network, Small Business Majority, and the Aspen Institute. For more information, visit www.borrowersbillofrights.org.
