Small Business Owners Could Save Billions Annually, Create Jobs, and Spur Economic Growth Under California’s Proposed Commercial Finance Disclosure Regulations
For immediate release: February 3, 2020
CONTACT:
Caitlin McShane
(415) 225-8855 | [email protected]
Statement on behalf of the Responsible Business Lending Coalition, a network of non-profit and for-profit lenders, investors, and small business advocates, in response to California’s proposed commercial financing disclosures.
As California’s Department of Business Oversight (DBO) finalizes requirements for commercial credit disclosures under the first Truth in Lending law in the country to apply to small business financing (SB 1235), the Responsible Business Lending Coalition (RBLC) urges the DBO to implement the proposed regulations swiftly -- especially in light of the positive economic impact these disclosure requirements would have on California small business owners, the marketplace, and the state’s economy.
Implementation of this historic law could result in annual savings of $617 million to $2.9 billion for the 127,000 California small business owners who would select a lower-cost financing option when empowered with the ease to shop and compare financing options, according to analysis conducted by the RBLC in response to the DBO’s third invitation for comment, an inquiry into the economic impact of the proposed regulations.
While small businesses across the state would benefit, those that are most underserved -- minority-owned, immigrant-owned, and smaller businesses -- disproportionately apply for online financing and would benefit the most from the ability to comparison shop under the new disclosures required.
With the potential to generate hundreds, even thousands, of new jobs as well as stimulate $665 million to $5.4 billion in new economic activity annually, these savings will not only benefit small business owners but also yield overwhelmingly positive effects on California’s economy. Furthermore, the economic impact of these uniform commercial credit disclosures will multiply over time as transparency continues to drive greater competition and lower pricing in the marketplace.
The RBLC’s full comment letter, along with additional figures, analysis, and references, can be found here.
###
Responsible Business Lending Coalition
The Responsible Business Lending Coalition (RBLC) is a network of non-profit and for-profit lenders, 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. Since the creation of the Small Business Borrowers' Bill of Rights, nearly 60 small business lenders, brokers and lead generators have committed to uphold these rights, and nearly 50 advocacy and support organizations have endorsed them. For more information, visit www.borrowersbillofrights.org.
CONTACT:
Caitlin McShane
(415) 225-8855 | [email protected]
Statement on behalf of the Responsible Business Lending Coalition, a network of non-profit and for-profit lenders, investors, and small business advocates, in response to California’s proposed commercial financing disclosures.
As California’s Department of Business Oversight (DBO) finalizes requirements for commercial credit disclosures under the first Truth in Lending law in the country to apply to small business financing (SB 1235), the Responsible Business Lending Coalition (RBLC) urges the DBO to implement the proposed regulations swiftly -- especially in light of the positive economic impact these disclosure requirements would have on California small business owners, the marketplace, and the state’s economy.
Implementation of this historic law could result in annual savings of $617 million to $2.9 billion for the 127,000 California small business owners who would select a lower-cost financing option when empowered with the ease to shop and compare financing options, according to analysis conducted by the RBLC in response to the DBO’s third invitation for comment, an inquiry into the economic impact of the proposed regulations.
While small businesses across the state would benefit, those that are most underserved -- minority-owned, immigrant-owned, and smaller businesses -- disproportionately apply for online financing and would benefit the most from the ability to comparison shop under the new disclosures required.
With the potential to generate hundreds, even thousands, of new jobs as well as stimulate $665 million to $5.4 billion in new economic activity annually, these savings will not only benefit small business owners but also yield overwhelmingly positive effects on California’s economy. Furthermore, the economic impact of these uniform commercial credit disclosures will multiply over time as transparency continues to drive greater competition and lower pricing in the marketplace.
The RBLC’s full comment letter, along with additional figures, analysis, and references, can be found here.
###
Responsible Business Lending Coalition
The Responsible Business Lending Coalition (RBLC) is a network of non-profit and for-profit lenders, 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. Since the creation of the Small Business Borrowers' Bill of Rights, nearly 60 small business lenders, brokers and lead generators have committed to uphold these rights, and nearly 50 advocacy and support organizations have endorsed them. For more information, visit www.borrowersbillofrights.org.