Woodstock Institute Vice President for Policy and Communication Brent Adams wrote recently to U.S. Rep. Sean Casten and the other members of the Illinois Congressional delegation on the House Financial Services Committee to urge them to co-sponsor H.R. 6054 (Velázquez). This bill would give small businesses “Truth-In-Lending” rights like those consumers have when borrowing money.
Currently, when a small business applies for a loan, a lender is not required to disclose the loan’s Annual Percentage Rate (APR). Consequently, small businesses are getting loans without knowing the cost, or worse, being misled into believing that a predatory loan is actually affordable.