Local leaders and lawmakers hear firsthand how hidden loan terms and APRs of 300+% impact small businesses and access to capital
For Immediate Release:
January 29, 2026
Contact:
Ben Grafe | ben@sgstrategies.com
Robert Mayo | hello@woodstockinst.org
CHICAGO – Small business owners from across Evanston gathered Thursday morning with local and state leaders at a Small Business Town Hall hosted by the Coalition for Small Business Loan Transparency and Woodstock Institute to share firsthand experiences with accessing financing and capital — and to highlight how hidden and deceptive loan terms continue to burden entrepreneurs.
During the discussion, business owners described how non-bank lenders often market loans using confusing pricing structures like “factor rates” and fees that obscure the true cost of borrowing, making it difficult to compare options or understand the long-term impact on their businesses.
“Access to capital shouldn’t come with fine print that’s hard to understand,” said Vincent Johnson, photographer and small business owner. “Clear, upfront loan disclosures help small business owners compare options and choose financing that actually supports long-term success.”
To address these challenges, advocates and lawmakers are pushing the Small Business Financing Transparency Act (SBFTA), also known as APR for All. This legislation would require non-bank lenders to disclose the Annual Percentage Rate (APR) on loans offered to small businesses. While consumers have been entitled to clear APR disclosures under the federal Truth in Lending Act since the 1960s, small business owners remain excluded from these basic protections.
“Small businesses drive local economies and create opportunity in our communities, yet too many are left guessing about the true cost of credit,” said House Majority Leader Robyn Gabel. “APR for All is a commonsense step to give business owners clear, straightforward information and ensure lenders are held to basic transparency standards.”
Without APR disclosure, lenders can advertise loans using misleading pricing schemes that hide triple-digit interest rates, making it harder for entrepreneurs to make informed decisions. States like California and New York have already enacted APR disclosure laws for small businesses, while Illinois small businesses remain exposed.
“Running a small business is hard enough without having to hunt for the true cost of a loan,” said Paul Zalmezak, Economic Development Manager for the city of Evanston. “APR for All will finally give business owners a level playing field.”
Illinois small businesses lose nearly $460 million every year due to nontransparent lending practices. These harms fall disproportionately on Black- and Hispanic-owned businesses, which are more likely to rely on non-bank financing because of barriers in traditional lending. Research shows that when APR is not disclosed, borrowers are more likely to choose unnecessarily expensive financing products.
“Small businesses deserve the same transparency consumers have relied on for nearly 60 years,” said Horacio Méndez, President and CEO of the Woodstock Institute. “APR disclosure gives business owners an apples-to-apples comparison so they can choose financing that actually helps their business grow instead of draining it.”
In addition to sharing their experiences, attendees were connected with information about available grant programs and property tax assistance, underscoring the importance of pairing transparency with real support for small businesses.
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