New York Enacts Strongest Commercial Lending Disclosure Law in the Nation

For immediate release: December 23, 2020

​CONTACT:

Caitlin McShane

(415) 225-8855 | caitlin@emccommunications.com

Statement from Ryan Metcalf on behalf of the Responsible Business Lending Coalition applauding Governor Cuomo for signing New York State’s Small Business Truth in Lending Act into law today.

December 23, 2020 — Ryan Metcalf, Head of Regulatory Affairs for Funding Circle U.S. and Spokesperson for the Responsible Business Lending Coalition (RBLC) — a network of nonprofit and for-profit lenders, investors, and small business advocates — released the following statement in response to Governor Cuomo signing the New York State Small Business Truth in Lending Act into law.

“Gov. Cuomo signing the New York State Small Business Truth in Lending Act into law today is a monumental victory for small business owners throughout the state. Not only does the legislation bring novel, common-sense transparency standards to small business financing in New York, it marks the strongest commercial lending disclosure law in the nation. 

At a moment in history when small businesses are under serious threat, passage of the New York State Small Business Truth in Lending Act comes just as small business owners need protection the most. Clear and concise language from lenders will allow entrepreneurs to easily shop and compare financing offers, empowering them to make the best financial decisions for their businesses.

Under this law, the Responsible Business Lending Coalition projects that New York small businesses will save between $369 million and $1.75 billion annually. For the state’s 26,000 minority-owned small businesses, cumulative annual savings are expected to be in the hundreds of millions.

The RBLC thanks Governor Cuomo and the Department of Financial Services for their efforts and their commitment to small businesses. We also commend the leadership of Assemblyman Zebrowski and Senator Thomas for authoring the bill.”

​The New York State Small Business Truth in Lending Act builds upon similar legislation passed in California. Both bills were inspired by the Responsible Business Lending Coalition’s Small Business Borrowers’ Bill of Rights, a list of fundamental financing rights that all small businesses deserve.

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RESPONSIBLE BUSINESS LENDING COALITION​

​The Responsible Business Lending Coalition (RBLC) is the leading cross-sector voice on small business financial protection. The coalition is comprised of nonprofit 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. 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