Title: 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.
Policy area: Commerce

Summary:
This resolution urges Congress to take all appropriate measures to use certain principles as a framework for potential legislation and regulations to protect small business owners seeking financing that would start, continue, or expand operations and create jobs.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 370 Introduced in House (IH)]

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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. Velazquez) 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;
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 protections 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
    Resolved, That it is the sense of the House of Representatives 
that--
            (1) the above principles promote the sustained growth and 
        vitality of America's main street businesses; and
            (2) Congress should take all appropriate measures to use 
        these principles as a framework for potential legislation and 
        regulations to protect small business owners seeking financing 
        that would start, continue, or expand operations and create 
        jobs.
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