HRES 1267
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.
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill overview
This resolution expresses the House of Representatives’ belief that small business owners deserve certain rights when seeking financing. It emphasizes the importance of transparency in pricing and terms, fair underwriting practices, and equitable treatment from all parties involved in the financing process. The resolution also highlights the need for protections against predatory lending and ensures access to credit for small businesses.
Key provisions
- Small business owners have the right to transparent pricing and terms.
- Financing products should not trap businesses in cycles of reborrowing.
- Underwriting practices should assess a business’s ability to repay.
- Borrowers have the right to honest and impartial communication from financing providers.
- Small businesses deserve fair and equal treatment under the Equal Credit Opportunity Act.
- Fair and respectful treatment is expected during collections processes.
- Financing providers should not use confessions of judgment.
- Congress should consider legislation and regulations based on these principles.
Who is affected
- Small business owners
- Financing providers
- Brokers
- Lead generators
- Entrepreneurs
Notable changes
- The resolution outlines specific rights for small business borrowers regarding financing.
- It calls for the use of these principles as a framework for potential legislation and regulations.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yoursRead the latest version inline or switch to a previous version.
119th CONGRESS — 2d Session
H. RES. 1267
IN THE HOUSE OF REPRESENTATIVES
RESOLUTION
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.
Whereas there are more than 33.2 million small businesses in the United States, accounting for 99 percent of all firms;
Whereas, from 1995 to 2024, small businesses created 20.7 million net new jobs, accounting for 61 percent of net new jobs in that period;
Whereas small businesses are the driving force behind innovation and competitiveness in the United States and are integral to the Nation’s overall economic growth and prosperity;
Whereas, according to the Federal Reserve’s 2025 Small Business Credit Survey, 86 percent of small firms use financing on a regular basis;
Whereas entrepreneurs throughout the country face challenges accessing the capital needed to create, sustain, and grow small businesses and at the same time, are increasingly 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 business to succeed and repay;
Whereas a small business borrower has the right to honest, transparent, and impartial communications with all financing 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 protections guaranteed under the Equal Credit Opportunity Act;
Whereas a small business borrower has the right to be treated 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 judgment or equivalent legal agreements by which a borrower preemptively agrees to lose disputes with the financing provider: Now, therefore, be it
That it is the sense of the House of Representatives that—
the above principles promote the sustained growth and vitality of America’s main street businesses; and
Congress should take all appropriate measures to use these principles as a framework for potential legislation and regulations to protect small business owners seeking financing that would start, continue, or expand operations and create jobs.