A bill to protect small business owners, backed by Opportunity Fund and leading business advocates, heads to Governor’s desk for signature. SB 1235 would be first in the nation to establish Truth-in-Lending laws to protect small business borrowers is on its way to the governor’s desk.
Approved late last Friday night by the state Assembly and Senate, SB 1235 authored by State Sen. Steve Glazer (D-East Bay), would require lenders and other finance companies to provide clear and consistent disclosures to small business owners. The bill would bring transparency to the small business lending space that will help thousands of California small business owners avoid high cost debt (our research found unregulated small business lenders to charge an average of 94% APR!).
Opportunity Fund joined a coalition of more than sixty organization – both private sector and non-profits – to support the bill.
“As co-authors of the Small Business Borrowers’ Bill of Rights, we were thrilled to see the principles of transparency and responsible lending we articulated – and the abusive practices we’ve documented in our research – inspired Senator Glazer and his staff to take up this bill,” said Opportunity Fund VP of Research and Policy Gwendy Brown. “Once again, California leads the nation with policies we hope will inspire other legislative bodies. It’s time to tame the Wild West of small business lending.”
At the time financing is offered, the financer would have to disclose the following:
– Total amount of financing
– Total cost of financing
– Term length
– Frequency and amount of payments
– Pre-payment policies
– Annualized rate
This history-making bill is on its way to Governor Brown’s desk. Contact Governor Jerry Brown and let him know you support SB 1235 and respectfully request he sign it into law!
I’m calling to voice my support for SB1235, California’s Truth-In-Lending Law for Small Businesses. I urge Governor Brown to sign this bill into law, which will bring much needed transparency to the small business lending field and make California a national leader in consumer protections for main street business owners. Thank you.