The Financial Technology Association (FTA) appreciates the opportunity to raise its concerns with Illinois HB 2595 and SB 260. FTA is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect this digital transformation.
Fintechs play an important role in providing access to capital for small businesses, including filling credit access gaps when no other options are available.1 This lending drives business growth, job creation, and the health of Main Street. FTA believes it is critical for small business owners to be provided with clear information about their commercial financing products so that they can make informed decisions.
However, commercial lending is distinct from consumer lending in terms of use cases, product structures, borrower sophistication, and demand. Small business owners often assess financing options for very different reasons and on different timelines than consumers. Many times, business owners may leverage different pricing metrics, like the total cost of credit, when evaluating a financing option.
Read FTA’s full letter of opposition here.