There are many challenges associated with opening a small business in Illinois. Finding the funds to operate a business can be difficult, especially if one is looking for a lot of capital upfront to get started. Fortunately, there are opportunities for entrepreneurs to take out loans that are specifically designed to help small businesses begin operations. A new bill will provide more transparency for those wishing to open a small business so they’re aware of the specific terms of a loan before signing the papers.
Proposed changes
Senate Bill 2234 would provide additional protection to small business owners when they take out loans. The bill would require the lender to provide upfront information on the exact terms of the loans, allowing business owners to shop around between lenders and choose the best option based on their needs. If the bill is passed, lenders would have to disclose the total amount financed, any applicable fees, and the APR at the time the loan is offered.
The bill would apply to online lenders and other non-bank loan providers. SB 2234 addresses the issues faced by many small business owners when seeking transparency from lenders before signing paperwork to take out a loan. Having the terms of the loan upfront can provide the information needed to make an informed financial decision.
Legal advice for small business owners
Owning a small business comes with many legal considerations. Small business owners in Illinois likely have questions about financing their businesses and other related matters. By working with someone familiar with the state’s business laws, one can have those questions or concerns dealt with promptly.
