Expressing the sense of the House of Representatives that small business owners seeking financing have fundamental rights, including transparent pricing and terms, competitive products, responsible underwriting, fair treatment from financing providers, brokers, and lead generators, inclusive credit access, and fair collection practices.

IV 116TH CONGRESS 1ST SESSION H. RES. 370 Expressing the sense of the House of Representatives that small business owners seeking financing have fundamental rights, including transparent pricing and terms, competitive products, responsible underwriting, fair treatment from financing providers, brokers, and lead generators, inclu- sive credit access, and fair collection practices. IN THE HOUSE OF REPRESENTATIVES MAY 9, 2019 Mr. PHILLIPS (for himself, Mr. TIMMONS, and Ms. VELA´ZQUEZ) submitted the following resolution; which was referred to the Committee on Small Business RESOLUTION Expressing the sense of the House of Representatives that small business owners seeking financing have funda- mental rights, including transparent pricing and terms, competitive products, responsible underwriting, fair treat- ment from financing providers, brokers, and lead genera- tors, inclusive credit access, and fair collection practices. Whereas there are more than 30 million small businesses in the United States, accounting for 99 percent of all firms; Whereas, from 2000 to 2017, small businesses created 8.4 million net new jobs, accounting for more than two-thirds of net new job creation in that period; VerDate Sep 11 2014 00:31 May 10, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6300 E:\BILLS\HR370.IH HR370 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HRES 370 IH Whereas small businesses are the driving force behind innova- tion and competitiveness in the United States and are in- tegral to the Nation’s overall economic growth and pros- perity; Whereas according to the National Small Business Associa- tion, 73 percent of small firms used financing in the last 12 months; Whereas entrepreneurs throughout the country face chal- lenges accessing the capital needed to create, sustain, and grow small businesses and at the same time, are increas- ingly targeted with irresponsible lending practices; Whereas a small business borrower has the right to have the cost and terms of any financing being offered presented to them in writing and in a form that is clear, complete, and easy to compare with other financing options, so they can make the best decision for their business; Whereas a small business borrower has the right to expect that financing products will not trap his or her business in an expensive cycle of reborrowing; Whereas a small business borrower has the right to expect that financing is offered to them based on underwriting practices that assess the ability of the borrower’s busi- ness to succeed and repay; Whereas a small business borrower has the right to honest, transparent, and impartial communications with all fi- nancing providers, brokers, and lead generators regarding loan options, conflicts of interest, fees, and the financing options available; Whereas a small business borrower has the right to fair and equal treatment when seeking a loan, including protec- VerDate Sep 11 2014 00:31 May 10, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6300 E:\BILLS\HR370.IH HR370 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HRES 370 IH tions guaranteed under the Equal Credit Opportunity Act; Whereas a small business borrower has the right to be treat- ed fairly and respectfully throughout a collections process and the right to protections like those guaranteed under the Fair Debt Collection Practices Act; and Whereas a small business borrower has the right to expect that financing providers do not use confessions of judg- ment or equivalent legal agreements by which a borrower preemptively agrees to lose disputes with the financing provider: Now, therefore, be it Resolved, That it is the sense of the House of Rep- 1 resentatives that— 2 (1) the above principles promote the sustained 3 growth and vitality of America’s main street busi- 4 nesses; and 5 (2) Congress should take all appropriate meas- 6 ures to use these principles as a framework for po- 7 tential legislation and regulations to protect small 8 business owners seeking financing that would start, 9 continue, or expand operations and create jobs. 10 Æ VerDate Sep 11 2014 00:31 May 10, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\HR370.IH HR370 pamtmann on DSKBFK8HB2PROD with BILLS