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Senate Bill 2234 from state Sen. Christopher Belt, D-Swansea,
would provide protections for small businesses when taking out a
loan by requiring financial terms such as the amount financed,
fees and the annual percentage rate be clearly disclosed at the
time an online or non-bank provider makes an offer for a loan.
“There are small businesses around the state, especially in my
community, that have faced challenges in accessing fair and
transparent financing options that have allowed them to fall
victim to predatory lending,” said Belt. “These businesses are
the backbone of our communities and they should be uplifted, not
burdened with financial hardship and business failure.”
During floor debate, state Sen. Jason Plummer, R-Edwardsville,
said it is bad legislation.
“This bill was designed to go after certain companies and
protect the big guys,” said Plummer. “It was marketed that this
was going to somehow protect businesses, but ironically, who are
all the opposition? It’s all the small business groups and it’s
all the medium-sized business groups.”
The measure passed the Senate by a 36-19 vote.
The Woodstock Institute issued a statement following passage of
the bill.
“By ensuring transparent pricing and terms, this legislation
will empower small business owners to make informed financial
decisions and help protect them from exploitation,” said Jane
Doyle, Senior Regulatory Policy Associate. “We urge Illinois
State Representatives to swiftly pass SB 2234 to give small
businesses basic protections when borrowing money."
Only two other states, California and New York, have enacted
similar transparency laws.
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