Protecting Access to Credit for Small Businesses Act

4/11/2024, 8:23 AM
Read twice and referred to the Committee on Small Business and Entrepreneurship.
Bill 118 s 3992, also known as the Protecting Access to Credit for Small Businesses Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to ensure that small businesses have continued access to credit in order to support their growth and success.

The bill aims to achieve this goal by amending the Truth in Lending Act to exempt certain small business loans from certain disclosure requirements. This exemption would apply to loans that are made for commercial or business purposes and have a principal amount of $250,000 or less.

Proponents of the bill argue that these disclosure requirements can be burdensome for small businesses and may deter lenders from providing them with the credit they need to thrive. By exempting these smaller loans from certain disclosure requirements, the bill seeks to make it easier for small businesses to access the credit they need to grow and create jobs. Opponents of the bill, however, raise concerns about potential risks to consumers and small businesses that could arise from loosening these disclosure requirements. They argue that these requirements are in place to protect borrowers from predatory lending practices and ensure that they have all the information they need to make informed decisions about taking on debt. Overall, the Protecting Access to Credit for Small Businesses Act is a complex piece of legislation that seeks to strike a balance between supporting small businesses and protecting consumers. It will be important for lawmakers to carefully consider the potential impacts of this bill on both small businesses and consumers as they debate its passage.
Congress
118

Number
S - 3992

Introduced on
2024-03-20

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

3/20/2024

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Read twice and referred to the Committee on Small Business and Entrepreneurship.
Bill 118 s 3992, also known as the Protecting Access to Credit for Small Businesses Act, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to ensure that small businesses have continued access to credit in order to support their growth and success.

The bill aims to achieve this goal by amending the Truth in Lending Act to exempt certain small business loans from certain disclosure requirements. This exemption would apply to loans that are made for commercial or business purposes and have a principal amount of $250,000 or less.

Proponents of the bill argue that these disclosure requirements can be burdensome for small businesses and may deter lenders from providing them with the credit they need to thrive. By exempting these smaller loans from certain disclosure requirements, the bill seeks to make it easier for small businesses to access the credit they need to grow and create jobs. Opponents of the bill, however, raise concerns about potential risks to consumers and small businesses that could arise from loosening these disclosure requirements. They argue that these requirements are in place to protect borrowers from predatory lending practices and ensure that they have all the information they need to make informed decisions about taking on debt. Overall, the Protecting Access to Credit for Small Businesses Act is a complex piece of legislation that seeks to strike a balance between supporting small businesses and protecting consumers. It will be important for lawmakers to carefully consider the potential impacts of this bill on both small businesses and consumers as they debate its passage.
Alternative Names
Official Title as IntroducedA bill to prohibit the Administrator of the Small Business Administration from directly making loans under the 7(a) loan program, and for other purposes.

Policy Areas
Commerce

Comments

Recent Activity

Latest Action3/20/2024
Read twice and referred to the Committee on Small Business and Entrepreneurship.