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Responsible Business Lending Coalition Applauds CFPB Director Rohit Chopra's Comments on Importance of Transparent Commercial Financing Disclosures

  • louis4952
  • Apr 28, 2022
  • 2 min read

Updated: Mar 31

For immediate release: April 28, 2022


​CONTACT:

Caitlin McShane



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.


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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 90 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, Camino Financial, Community Investment Management, LendingClub, the National Community Reinvestment Coalition, Opportunity Finance Network, the National Association for Latino Community Asset Builders, and Small Business Majority. For more information, visit ​borrowersbillofrights.org.

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