Woodstock Institute is championing SB 2234/HB 5587 as part of our efforts to protect and promote small businesses.

When small businesses turn to online companies that are not banks to obtain financing, it is practically the Wild West. These “nonbank lenders” don’t have to disclose the interest rate – or Annual Percentage Rate (APR) – of their loans and don’t need to be licensed. The APRs on these loans can exceed 300%!

SB 2234/HB 5587 would establish important protections for small businesses receiving financing from nonbank lenders. Nonbank lenders would be required to disclose the APR of their loans and would be required to obtain a license from the State.