April 12, 2016
The Honorable Jacquiline Y Collins, Chairperson
Committee on Financial Institutions
Illinois State Senate
Dear Chair. Collins:
The undersigned organizations, companies, and coalitions who have business in Illinois and throughout the country are writing to express our concerns with SB 2865, the Small Business Lending Act.
We all share your goal of helping small businesses. However, we believe that the prescriptive underwriting standards, complex regulatory mandates, and expansion of civil and criminal liability will prevent small businesses from getting the capital they need to grow and benefit their communities and the state of Illinois.
We respectfully ask the Committee to study the issue of access to capital for small business in Illinois through a transparent process that involves the direct input from small businesses prior to moving forward with SB 2865.
We are hopeful that a deliberative, inclusive, and public process could produce a report that will assist your Committee and the Illinois legislature. Among the questions a study committee could try and answer are: what methods of transparency and disclosure by alternative lenders and finance companies would make it easier for responsible small business borrowing; should non-profit lenders be exempt from alternative lending and finance requirements; and how does the securitization and sale of alternative loans benefit small business lending?
Of course, there are many additional issues that small business stakeholders will identify through a study committee in an effort to assist your Committee prior to any legislative action on SB 2865. We stand ready to assist you in that effort and we appreciate the consideration of our views.
Coalition of Responsible Business Finance
Electronic Transactions Association
Illinois Retail Merchants Association
Equipment Leasing and Finance Association
Small Business & Entrepreneurship Council
Small Business Investors Alliance
National Small Business Association
Illinois Chamber of Commerce