New York Passes ‘Truth in Lending’ Act for Small Businesses

Originally published in Banking Exchange on July 27, 2020.

A coalition of lenders, investors and small business groups has thrown its weight behind a move to improve transparency of borrowing costs in New York.

The state’s legislature passed a bill last week designed to require online lenders to clearly disclose the cost of borrowing to small business clients.

The bill is awaiting sign off from Governor Andrew Cuomo.

The Responsible Business Lending Coalition (RBLC) praised Ken Zebrowski, a member of the New York Assembly, and Senator Kevin Thomas of the New York Senate for their work in introducing and promoting the legislation.

The bill – known as the ‘Truth in Lending’ Act – passed on Thursday following corresponding votes in the Senate and Assembly.

“Clear and concise language from lenders will allow entrepreneurs to easily shop and compare financing offers, thereby empowering them to make the best financial decisions for their businesses,” the RBLC said in a statement.

The coalition estimated that small business across New York would save between $369 million and $1.75 billion a year through being able to see more clearly how much it costs to borrow money.

In a post on twitter on July 24, Senator Thomas said lawmakers needed to support small businesses “now more than ever”.