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Increased Transparency for Small Business Loans: New Disclosure Rules

This act introduces new rules for disclosing information about financing for small businesses, similar to those protecting consumers. This will give entrepreneurs a clearer picture of loan costs, making it easier for them to make informed financial decisions and compare offers. The goal is to increase transparency and protect small businesses from hidden fees.
Key points
Mandatory disclosure of the Annual Percentage Rate (APR) for various types of small business financing, including credit, factoring, and sales-based financing.
Requirement to clearly present the total amount to be paid, fees, repayment terms, and any prepayment costs.
Prohibition of 'double-dipping' fees when refinancing or modifying existing loans, unless there is a tangible benefit to the small business.
Introduction of definitions for key terms, such as 'small business financing' (up to $2.5 million) and 'finance charge', to ensure consistent understanding of the regulations.
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Additional Information
Print number: 117_HR_6054
Sponsor: Rep. Velazquez, Nydia M. [D-NY-7]
Process start date: 2021-11-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Lending Disclosure Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_6054.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-11-18.

What are the main provisions?

Key points include:

  • Mandatory disclosure of the Annual Percentage Rate (APR) for various types of small business financing, including credit, factoring, and sales-based financing.
  • Requirement to clearly present the total amount to be paid, fees, repayment terms, and any prepayment costs.
  • Prohibition of 'double-dipping' fees when refinancing or modifying existing loans, unless there is a tangible benefit to the small business.
  • Introduction of definitions for key terms, such as 'small business financing' (up to $2.5 million) and 'finance charge', to ensure consistent understanding of the regulations.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Velazquez, Nydia M. [D-NY-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy Courts and Law