IV 

116TH CONGRESS 

1ST SESSION H. RES. 370 

Expressing the sense of the House of Representatives that small business 

owners seeking financing have fundamental rights, including transparent 

pricing and terms, competitive products, responsible underwriting, fair 

treatment from financing providers, brokers, and lead generators, inclusive credit access, and fair collection practices. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 9, 2019 

Mr. PHILLIPS (for himself, Mr. TIMMONS, and Ms. VELA ́ZQUEZ) submitted 

the following resolution; which was referred to the Committee on Small 

Business 

RESOLUTION 

Expressing the sense of the House of Representatives that 

small business owners seeking financing have fundamental rights, including transparent pricing and terms, 

competitive products, responsible underwriting, fair treatment from financing providers, brokers, and lead generators, inclusive credit access, and fair collection practices. 

Whereas there are more than 30 million small businesses in 

the United States, accounting for 99 percent of all firms; 

Whereas, from 2000 to 2017, small businesses created 8.4 

million net new jobs, accounting for more than two-thirds 

of net new job creation in that period; 


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•HRES 370 IH 

Whereas small businesses are the driving force behind innovation and competitiveness in the United States and are integral to the Nation’s overall economic growth and prosperity; 

Whereas according to the National Small Business Association, 73 percent of small firms used financing in the last 

12 months; 

Whereas entrepreneurs throughout the country face challenges accessing the capital needed to create, sustain, and 

grow small businesses and at the same time, are increasingly targeted with irresponsible lending practices; 

Whereas a small business borrower has the right to have the 

cost and terms of any financing being offered presented 

to them in writing and in a form that is clear, complete, 

and easy to compare with other financing options, so they 

can make the best decision for their business; 

Whereas a small business borrower has the right to expect 

that financing products will not trap his or her business 

in an expensive cycle of reborrowing; 

Whereas a small business borrower has the right to expect 

that financing is offered to them based on underwriting 

practices that assess the ability of the borrower’s business to succeed and repay; 

Whereas a small business borrower has the right to honest, 

transparent, and impartial communications with all financing providers, brokers, and lead generators regarding 

loan options, conflicts of interest, fees, and the financing 

options available; 

Whereas a small business borrower has the right to fair and 

equal treatment when seeking a loan, including protecVerDate Sep 11 2014 00:31 May 10, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6300 E:\BILLS\HR370.IH HR370

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•HRES 370 IH 

tions guaranteed under the Equal Credit Opportunity 

Act; 

Whereas a small business borrower has the right to be treated fairly and respectfully throughout a collections process 

and the right to protections like those guaranteed under 

the Fair Debt Collection Practices Act; and 

Whereas a small business borrower has the right to expect 

that financing providers do not use confessions of judgment or equivalent legal agreements by which a borrower 

preemptively agrees to lose disputes with the financing 

provider: Now, therefore, be it 

1 Resolved, That it is the sense of the House of Rep2 resentatives that— 

3 (1) the above principles promote the sustained 

4 growth and vitality of America’s main street busi5 nesses; and 

6 (2) Congress should take all appropriate meas7 ures to use these principles as a framework for po8 tential legislation and regulations to protect small 

9 business owners seeking financing that would start, 

10 continue, or expand operations and create jobs. 

Æ 


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