For Immediate Release:
March 24, 2026
Contact:
Jaclyn Driscoll | jaclyn@sgstrategies.com | (217) 371-7373
Robert Mayo | hello@woodstockinst.org
Coalition Urges Passage of APR for All to Require Transparency in Small Business Lending
Illinois Small Businesses Lose $1.25 Million Daily to Hidden Loan APRs, Meanwhile the Non-bank Loan Industry has Grown To Be Worth $20 Billion
SPRINGFIELD, ILL. — Small business owners, legislators and advocates gathered at the Illinois State Capitol today to call on lawmakers to pass the Small Business Financing Transparency Act (HB744 HA #1), also known as APR for All, legislation that would require non-bank lenders to disclose the Annual Percentage Rate (APR) of loans offered to small businesses.
Illinois small businesses lose an estimated $1.25 million every day to nontransparent loans that obscure the true cost of borrowing. Those losses represent dollars that should be going toward hiring, expansion and local investment — not hidden fees and invisible interest.
“So many small business owners fall victim to these kinds of financing products because of their lack of transparency and perceived accessibility,” said Dr. Jennifer Matthews, owner of Dr. Jennifer Matthews Consulting LLC in Chicago. “There need to be safeguards for small business owners who are barred from accessing traditional loans to keep their business and their finances safe.”
While loans to consumers have disclosed APR for six decades, small businesses are still excluded from these basic protections. Non-bank lenders often advertise loans using confusing “factor rates” or other pricing structures that make it difficult for business owners to compare options and understand the true cost of borrowing.
“Every year, Hispanic-owned small businesses in Illinois lose $57 million because they are not given clear, comparable information about the cost of their loans,” said Andres Solarte, Government and Community Relations Director, Illinois Hispanic Chamber of Commerce. “APR is the gold-standard and the only way to compare loans apples to apples. APR for All ensures that Hispanic-owned businesses — and all small businesses — can make informed financial decisions and keep more resources in their communities.”
Advocates also highlighted the broader community impact of nontransparent lending practices, particularly in communities that have experienced long-term disinvestment.
“When small businesses are forced into loans they do not fully understand, the impact goes far beyond one business,” said Jalen Williams, Community Organizing and Family Issues (COFI). “It affects workers, families and entire neighborhoods. APR for All is about making sure our communities are not losing resources to hidden costs and that small business owners have the tools they need to succeed.”
APR has been the standard measure for comparing loan costs for consumer lending since the passage of the federal Truth in Lending Act in 1968, and advocates stressed that extending this transparency to small businesses is long overdue.
In response to opponents who say that APR, an annual unit of measurement, can’t be applied to revenue-based loans, the coalition points to one of its members, Allies for Community Business, which makes hundreds of these loans every year while disclosing APR. That’s because just as miles per hour is a measurement of speed, whether or not a car is traveling for 30 minutes or two hours, APR is a measure of cost, whether or not a loan is for 30 days or three years.
“Small business owners deserve clear, honest information when they are making financial decisions that impact their employees, their families and their future,” said State Rep. Mary Beth Canty, chief sponsor of the bill. “This legislation is built on a simple principle: APR for All. Not partial transparency, not confusing alternatives — but one clear, consistent standard that allows business owners to compare loans fairly and make informed choices.”
The Small Business Financing Transparency Act does not restrict how much lenders can charge or limit access to capital. Instead, it only requires lenders to clearly disclose the true cost of financing so small business owners can compare loans fairly and make informed decisions.
A similar law has already been passed in states like New York and California, where small businesses received full transparency on loans without damaging the strong lending market in those states. The Maryland Senate has also unanimously passed similar legislation; it will now go to the House.
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About the Coalition for Small Business Lending Transparency
The Coalition for Small Business Lending Transparency (CSBLT) is a statewide alliance of small businesses, nonprofits and advocates working to ensure fair, transparent lending practices for Illinois entrepreneurs.
Member organizations include: AARP Illinois, Accion Opportunity Fund, Allies for Community Business, American Fintech Council, Annie’s Girls Charitable Foundation, Cameo Network, Capital Good Fund, Catholic Conference of Illinois, Chicago Community Loan Fund, Citizen Action Illinois, Claretian Associates, Community Organizing and Family Issues (COFI), Greater Chicagoland Black Chamber of Commerce, House of Mary Maternity Home, Illinois Black Chamber of Commerce, Illinois Hispanic Chamber of Commerce, Jane Addams Resource Corporation, Jewish Free Loan Chicago, Latino Prosperity, National Association for Latino Community Asset Builders, National Community Reinvestment Coalition, Opportunity Finance Network, Responsible Business Lending Coalition, Small Business Advocacy Council, Small Business Majority, Sunshine Enterprises, Trellis, Women Employed, Woodstock Institute, and Working Credit.
