For Immediate Release:
February 24, 2026
Contact:
Isabelle Dienstag | isabelle@sgstrategies.com | (217) 371-7373
Robert Mayo | hello@woodstockinst.org
“APR for All” Legislation Gets Big Boost From State’s Leading Constitutional Officers, County and City Leaders
Bill would require APR disclosure from lenders who offer loans to small businesses, closing predatory loophole
ILLINOIS – Every year, Illinois small businesses lose an estimated $450 million as a result of nontransparent loans that often conceal predatory triple-digit interest rates of more than 100%. A coalition of advocates for small business loan transparency have gotten a big boost in their effort to close the loophole that leaves small businesses vulnerable to predatory lending despite Illinois 36% rate cap on consumer loans.
Illinois Attorney General Kwame Raoul, Illinois Comptroller Susana Mendoza, Illinois Treasurer Mike Frerichs, Cook County Board President Toni Preckwinkle and Chicago Mayor Brandon Johnson have all endorsed the Small Business Financing Transparency Act (HB744 HA #1), (a.k.a ‘APR for All’) legislation that would require non-bank lenders to disclose the Annual Percentage Rate (APR) of loans offered to small businesses.
“Small business owners should have access to basic information when considering loans, and the current lack of transparency especially harms businesses in minority and lower-income communities,” said Illinois Attorney General Kwame Raoul. “This legislation helps reduce costs for small businesses by requiring the same transparency that already exists for many consumer lending products, like credit cards and mortgages. I urge the General Assembly to approve this proposal, and I remain committed to advocating for transparency for borrowers in Illinois.”
“Tariffs, high interest rates, and erratic federal policies have created a costly and precarious financial environment for small businesses. By passing the Small Business Financing Transparency Act, Illinois would make it much easier for small businesses to save money and pass these savings on to their customers,” said Illinois Comptroller Susana Mendoza.
“Transparency is crucial in financial matters. You find out the APR when you take out a car loan or a mortgage for a home. Small business owners, who are the backbone of our state’s economy, should get the same information so they can decide what’s best for them.” said Illinois Treasurer Mike Frerichs.
“Small businesses are the backbone of our community, and through our work with the Cook County Small Business Source, we know access to capital is one of the biggest hurdles they face,” said Cook County Board President Toni Preckwinkle. “These small business owners deserve basic lending protections, and this bill will provide the necessary transparency to help them thrive.”
“Costs go up for everyone when our City’s small businesses are forced to divert more and more money to paying off loans that hide their triple-digit interest rates,” Mayor Brandon Johnson said. “Requiring APR disclosure on these products is a basic transparency measure that would keep money in our communities, especially for Black and Brown small businesses that have much less access to traditional bank financing.”
While consumers have long been entitled to APR disclosures thanks to the federal Truth In Lending Act, small businesses are still excluded from these basic protections. Non-bank lenders, which are mostly online lenders, often advertise and make loans using confusing “factor rates” or other pricing schemes that obscure the true cost of borrowing, making it difficult for entrepreneurs to make apples-to-apples comparisons between their financing options.
States like California and New York have already passed APR disclosure laws to protect small businesses, but Illinois has yet to act despite having some of the strongest consumer financial protections of any state.
State Representative Mary Beth Canty (D-Arlington Heights) and Chief Sponsor of APR for All praised the endorsers saying, “I’m thrilled that APR for All is gaining momentum. These protections are essential for small businesses who don’t need yet another obstacle to success thrown at them. Nontransparent lending increases the cost of financing by making it nearly impossible for a small business owner to shop for the best price. These increased costs are passed on to consumers, making day-to-day life less affordable for the average Illinoisan. APR disclosures will empower small businesses to shop for the best price, which will benefit both them and their customers.”
The Coalition for Small Business Lending Transparency applauds these Illinois leaders for their ongoing efforts to fight for small businesses, protect consumers, and keep Illinois a national leader in the ongoing battle against predatory lending.
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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.
