State Senator Collins to Chair Senate Hearing on Small Business Impact of Predatory Lending, Lack of Access to Capital

CHICAGO, IL — Illinois State Senator Jacqueline Y. Collins (D-Chicago 16^th), chair of the Senate Financial Institutions Committee, will hold a subject-matter hearing Monday to hear from business owners, advocates and elected officials on predatory lending, lack of access to capital and the effect on small businesses, particularly those owned by minorities.

The number of loans issued by banks to small businesses has dropped by 20 percent since 2008. Alternative lenders have stepped into the gap, but without the same consumer protections that apply when individuals borrow money, small business owners are vulnerable to misleading and predatory practices. Businesses located in minority neighborhoods are disproportionately disadvantaged, and the lack of reliable access to capital remains a major challenge to economic growth in low-income, high-unemployment areas.

WHO:                   Sen. Collins and members of the Senate Financial Institutions Committee

                              City of Chicago Treasurer Kurt Summers

                              Representatives of advocacy and research groups with expertise

                              on the issue

                              Small business owners

WHAT:  Subject matter hearing on predatory lending and access to capital for Illinois small businesses

Committee members will hear testimony on existing resources and how state policy changes could help protect small business owners seeking loans from confusing, misleading and predatory terms.

WHEN:                 Monday, Jan. 25 at 1:30 p.m.

WHERE:               Room C600

                              Michael A. Bilandic Building

                              Chicago