Luz Urrutia, CEO of Accion Opportunity Fund and Opportunity Fund, testified to the House Small Business Committee today about the urgent need for transparency in small business lending. She spoke in support of the historic Small Business Lending Disclosure and Broker Regulation Act of 2020 that Congresswoman Nydia Velázquez introduced in late July – the first-ever federal truth-in-lending act for small businesses. If passed, the Act will protect small business owners from irresponsible lending practices.
The bill would protect small business owners from irresponsible and predatory lending practices. The legislation would bring a projected $3.8 billion in savings for nearly 800,000 small businesses annually, including hundreds of millions in savings for over 158,000 small businesses owned by entrepreneurs of color.
Watch Luz Urrutia’s testimony here:
Read the testimony here.
Read more about our work to advance lending transparency for small businesses here.
Opportunity Fund, the nation’s leading nonprofit small business lender, believes small dollar loans help hard-working entrepreneurs make lasting change in their own lives and build stronger communities by growing businesses and creating jobs. Opportunity Fund’s community of donors and investors is creating an inclusive financial system that empowers women, immigrant, and minority small business owners. Our strategy combines microloans for small business owners and New Markets Tax Credit investments in high-impact community infrastructure projects. Since 1994, Opportunity Fund has deployed more than $1 billion and helped thousands of entrepreneurs invest in their families’ futures. The organization has committed to lending an additional $1.2 billion to small business owners across the country and investing $174 million in community real estate projects by 2023.
In March, 2020, Opportunity Fund and Accion, The US Network, joined forces to establish Accion Opportunity Fund, the first organization focused on a national microlending strategy to meet the credit needs of small businesses – developing new products, establishing new partnerships, promoting research and financial education, and leveraging digital technologies to support mission-driven lending.