Congresswoman Simon Introduces Small Business Borrowers’ Bill of Rights

WASHINGTON, D.C. - During National Small Business Week, Congresswoman Lateefah Simon (D-CA-12) and House Committee on Small Business Ranking Member Nydia Velázquez (D-NY-07) introduced the Small Business Borrowers' Bill of Rights, a resolution affirming that small business owners seeking financing have fundamental rights to protect them from unfair lending practices.

Technological change has expanded access to small business loans and capital; however, it has also created new opportunities for predatory actors to take advantage of small business borrowers. From misleading pricing, unaffordable underwriting, and abusive loan products, small business owners face a variety of unfair practices. This resolution supports transparency, fairness, and accountability throughout the small business lending ecosystem by establishing six core financing rights for entrepreneurs.

The six rights of small business borrowers enumerated in this resolution, inspired by the Responsible Business Lending Coalition, include: the right to (1) transparent pricing and terms, (2) non-abusive products, (3) responsible underwriting, (4) fair treatment for brokers, (5) inclusive credit access, (6) fair collections processes.

"Ensuring that small businesses have equitable access to the capital they need to grow, hire, and thrive in a safe, transparent, and fair marketplace is essential," said Congresswoman Simon. "There are over 16,000 small businesses in my district, and I know that the key to strong, thriving Main Streets is ensuring that small business owners have the resources and protections they need. That's why I am proud to introduce this resolution alongside House Small Business Committee Ranking Member Velázquez to stand firmly against exploitative practices that undermine entrepreneurs and put small business owners at risk."

"As Ranking Member of the House Small Business Committee, I hear frequently from entrepreneurs about the challenges they face in securing the financing they need to start, sustain, and grow their businesses," said Ranking Member Velázquez. "Access to capital is essential for Main Street, but we have to be certain that the products available to small business owners don't open the door to predatory practices that trap them in cycles of debt. This resolution lays out a clear framework to keep credit flowing while protecting small businesses from unscrupulous actors."

You can find the full text of the resolution here. This legislation is endorsed by the Responsible Business Lending Coalition and Small Business Majority.

"Small business owners are increasingly struggling under irresponsible lending practices that set them up to fail, rather than help them succeed. Ten years after the Responsible Business Lending Coalition first convened for-profit lenders, nonprofits, and small business groups to develop the Small Business Borrowers' Bill of Rights - cross-sector industry standards for responsible small business lending-there has never been a more important time to affirm the practices that improve access to responsible capital," said Louis Caditz-Peck, Executive Director Responsible Business Lending Coalition. "We applaud Representative Velazquez and Representative Simon for standing up for Main Street and calling for small business owners to be treated fairly."

As a member of the House Small Business Committee, Congresswoman Simon is dedicated to promoting equity and ensuring fairness in business and loaning practices. Since coming to Congress in January 2025, she has passed three small business related-bills through the House of Representatives, including the Assisting Small Businesses, Not Fraudsters Act and the ThinkDIFFERENTLY About Disability Employment Act.

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