Responsible Business Lending Coalition Endorses Small Business Lending Disclosure and Broker Regulation Act

For immediate release: July 30, 2020

​CONTACT:

Caitlin McShane

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

Statement on behalf of the Responsible Business Lending Coalition, a network of nonprofit and for-profit lenders, investors, and small business advocates, in support of the Small Business Lending Disclosure and Broker Regulation Act

July 30, 2020 — ​The Responsible Business Lending Coalition (RBLC) -- the only cross-sector coalition whose members represent nonprofit and for-profit lenders, investors, and small business advocates -- proudly endorses the Small Business Lending Disclosure and Broker Regulation Act of 2020. We applaud Congresswoman Nydia Velázquez for her leadership introducing this legislation, which will bring common-sense transparency standards to small business financing in the United States. 

We are concerned by the lack of transparency currently provided to small businesses seeking financing – a problem requiring urgent action, particularly in light of COVID-19. Businesses are desperately searching for financing to bridge losses in revenue due to the pandemic, cover immediate expenses, and avoid closure. We project this bill will bring over $3.8 billion in savings for nearly 800,000 small businesses annually, including hundreds of millions in savings for over 158,000 minority-owned small businesses.

Particularly during this time of crisis, choosing an unaffordable financial product could be the difference between success and failure for our businesses that are already closing at high rates due to COVID-19-induced business interruptions. In red states and blue, small businesses matter to the health of our economy. They are what make our communities vibrant. We encourage leaders in Congress to work together to pass this historic law, keeping in mind the interests of small business owners across the country. 

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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