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Enhanced Transparency for Small Business Financing

This act aims to increase transparency in financing offers for small businesses, similar to consumer credit. This will provide small business owners with a clearer understanding of loan costs and terms, enabling them to make informed financial decisions and compare various offers.
Key points
Requires disclosure of Annual Percentage Rate (APR) for various financing types, including credit, factoring, and sales-based financing.
Mandates clear information on total amount to be paid, payment schedule, fees, and prepayment costs.
Prohibits 'double-dipping' fees when refinancing or modifying existing loans, unless there's a tangible benefit to the small business.
Establishes definitions for key terms like 'small business financing' (up to $2.5 million) and 'finance charge' to standardize rules.
Strengthens the Consumer Financial Protection Bureau's (CFPB) authority over small business financing oversight.
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Status:
Expired
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Additional Information
Print number: 118_HR_4192
Sponsor: Rep. Velazquez, Nydia M. [D-NY-7]
Process start date: 2023-06-15
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Small Business Financing Disclosure Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_4192.

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 2023-06-15.

What are the main provisions?

Key points include:

  • Requires disclosure of Annual Percentage Rate (APR) for various financing types, including credit, factoring, and sales-based financing.
  • Mandates clear information on total amount to be paid, payment schedule, fees, and prepayment costs.
  • Prohibits 'double-dipping' fees when refinancing or modifying existing loans, unless there's a tangible benefit to the small business.
  • Establishes definitions for key terms like 'small business financing' (up to $2.5 million) and 'finance charge' to standardize rules.
  • Strengthens the Consumer Financial Protection Bureau's (CFPB) authority over small business financing oversight.
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 2025-12-25.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Economy Courts and Law