belt 050224SPRINGFIELD – State Senator Christopher Belt moved a bill out of the Senate Thursday that would provide better financial protections for small businesses in the state.

“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 (D-Swansea). “These businesses are the backbone of our communities and they should be uplifted, not burdened with financial hardship and business failure.”

Senate Bill 2234 would create the Small Business Financing Transparency Act, which would provide protections for small businesses when taking out a loan by requiring key 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.

“With clear disclosure of loan agreements and financial terms, these businesses can make better decisions for their future and success,” said Belt. “Our state’s small business community will not have a future if predatory lending continues to occur. This measure sends a clear message that it will not be tolerated.”

Senate Bill 2234 heads to the House for consideration.