"As COVID-19 cases continue to rise and fall in and around Ithaca, small businesses are wondering what the future holds. If they were lucky enough to qualify for Payroll Protection Plan funds, they’ve long since run out. Many are now considering loans to tide them over until the better times we all hope are ahead.
"Unfortunately, predatory lenders are ramping up their efforts to take advantage of small businesses hit hard by the pandemic.
"Today, state law does not require all financing companies to clearly disclose pricing and terms to small business borrowers. Fortunately, in July, the NYS legislature passed the Small Business Truth in Lending Act – requiring clear and comprehensive disclosures from all lenders. It awaits Governor Cuomo’s signature."
Eric S. Levine, Esq., CEO of Alternatives Federal Credit Union, notes that "The Small Business Truth in Lending Act was endorsed by a wide range of lenders and small business advocates, including the New York State CDFI Coalition. Fair and honest lenders have nothing to fear regarding transparency and the adoption of standard
terms to describe the cost of loans. That’s why we’re urging Governor Cuomo to help protect the small businesses in our state by swiftly signing the Small Business Truth in Lending Act into law."
Read the full article as a PDF here.