Innovative Lending Platform Association Applauds Passage of New York Small Business Financing Bill
Urges Governor Cuomo to Sign Legislation That Will be a Model for Other States
WASHINGTON – July 23, 2020 – The Innovative Lending Platform Association (ILPA) today applauded the New York State Legislature for passing A10118A/S5470B, landmark legislation to ensure New York small businesses have a consistent and clear understanding of financing options.
ILPA worked tirelessly with Chairman Zebrowski, Chairman Sanders, legislative staff, small business advocates, and industry stakeholders to produce the most transparent and uniform small business financing disclosure law in the nation. As the leading trade organization representing online small business financing and services companies, ILPA enthusiastically endorses this bill, congratulates Chairman Zebrowski and Chairman Sanders on their tireless effort and leadership, and applauds the legislature for providing great certainty and clarity to New York’s small business community.
“First and foremost, thank you to Chairman Zebrowski and Chairman Thomas for their forward-looking vision that brought this critical legislation over the finish line. Their dedication to providing New York small businesses with more competitive options creates a more transparent lending system for all,” said ILPA CEO Scott Stewart. “Without their work and their incredible staff, this bill would not be on its way to the Governor’s desk.”
“This legislation creates the most robust disclosure regime for small business financing in the country. When searching for financing, small business owners deserve to know the exact terms, costs, and payments of the product they’re considering. And especially now, as New York businesses begin to recover from the COVID-19 pandemic, transparency and choice have never been more critical. ILPA has been a leader in small business financing disclosure since the development of SMART Box® in 2016, which includes the same essential metrics, such as APR and Total Cost of Financing included in this legislation. We believe that all small businesses deserve the opportunity to see, understand, and compare the most essential information before committing to a financing agreement,” continued Stewart.
“We urge Governor Cuomo to sign A10118A/S5470B into law, and we look forward to working with the Department of Financial Services on the regulatory process for implementing the new law. Once finalized, we believe New York will be a model for other states to require the same level of transparency that ILPA members have been providing through SMART Box to America’s small businesses.”
About ILPA
ILPA is the primary trade organization for online financing and service companies serving small businesses. Our members provide tens of thousands of small businesses with working capital to purchase inventory, hire additional hands for the busy season, expand the business, or repair damaged or outdated equipment. This capital comes from a variety of financing products, including term loans, lines of credit, merchant cash advance (MCA), and factoring. Our members include BFS Capital, BlueVine, Breakout Capital, Fundbox, Kabbage, Lendio, Mulligan Funding, OnDeck, Orion First Financial, Paynet, and The Business Backer.