Pared-down legislation won’t require financers to disclose estimated APR. Small business advocates push back.
The Connecticut legislature adopted new regulations Wednesday aimed at improving transparency for small businesses that seek financing from certain alternative lenders.
The bill received broad bipartisan support, with both chambers voting unanimously to pass the measure.
“The banking committee has looked at this over the course of the last two sessions, and over lengthy discussions with stakeholders, we have arrived at a bill we think is a good bill,” Rep. Jason Doucette, D-Manchester, who co-chairs the legislature’s Banking Committee, told fellow House members before the vote Wednesday.
But national small business advocates expressed frustration with the final version of the bill, which removed key elements they’d pushed for — namely, a requirement that alternative lenders disclose an estimated annual percentage rate (the yearly interest) charged on any financing they offer to small business clients.
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