WASHINGTON, D.C. – The Financial Technology Association (FTA) sent a letter to Connecticut Banking Committee Co-Chairs Jason Doucette and Pat Billie Miller, and to members of the committee, respectfully opposing Connecticut House Bill 5211.
Fintech plays an important role in providing access to capital for small businesses, and small business owners should receive clear information about commercial financial products so they can make informed decisions. However, CT HB 5211 could impede small businesses’ understanding of the true cost of such products and jeopardize access to credit.
“Small business owners often assess financing options for very different reasons and on different timelines than consumers,” wrote FTA. “Many times, business owners may leverage different pricing metrics, like the total cost of credit, when evaluating a financing option. While metrics such as an annual percentage rate (APR) may be useful in some contexts, applying an APR to all commercial financing products—especially short-term products—can result in confusing or even counterproductive information.”
“Ultimately, we support the enactment of a uniform, model state commercial financing disclosure law that harmonizes differing state requirements and accounts for varying financing models as the best path to ensuring that small businesses are making informed decisions,” FTA continued.
Read FTA’s full letter to the committee here to learn more.
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The Financial Technology Association (FTA) is a network of fintech industry leaders shaping the future of finance. We champion financial innovation and advocate for policies that expand competition, access, and opportunity.