BCW Joins with Statewide Coalition Endorsing Truth in Lending Act

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As part of its ongoing advocacy for the business community, The Business Council of Westchester this week joined with 68 other businesses, business groups, not-for profits and political leaders to endorse the New York State Small Business Truth in Lending Act. The legislation is projected to bring up to $1.75 billion in savings to more than 75,000 New York small businesses including hundreds of millions of dollaras in savings for more than 26,000 minority owned small businesses.

“Businesses are desperately searching for financing to bridge losses in revenue due to the pandemic, cover immediate expenses, and avoid closure. As New York State law does not require small business financing companies to clearly disclose the price and terms of financial products to prospective borrowers, businesses are

left to make potentially make-or-break financial decisions with incomplete information. During this time of crisis, choosing an unaffordable financial product could be the difference between success and failure for our businesses that are already closing at high rates due to COVID-19 induced business interruptions,” read the letter sent to James Sanders Jr, Chairman of the Senate Banks Committee and Thomas Abinanti, Chairman of the Assembly Banks Committee.

The letter noted that some financing companies are charging small businesses annual percentage rates (APR) that can average 94%, and even up to 350%, in payday-like cycles of reborrowing without ever disclosing those APRs to the borrowers.  “The BCW is proud to join with this diverse coalition in addressing a serious problem that requires urgent action, particularly in light of COVID-19,” said BCW COO and Executive VP John Ravitz.