CAMEO is excited to announce that SB 1235 (Glazer), the California small business truth-in-lending bill that we have been working on passed the legislature on August 31st, the last day of the legislative session. The vote was bipartisan with the Assembly voting 72-3 and the Senate 28-6! We’ve been working really hard with the author’s office and many allies (Small Business Majority, Lending Club, Greenlining, CRC, Opportunity Fund, Funding Circle, and CDC Small Business Finance to name a few) to make sure that it is a good bill that will help small business owners understand their financing options. We succeeded!
Thanks to all of you who wrote letters and joined the unique coalition that CAMEO and our partners put together consisting of advocates, for-profit companies, small business lenders, small business service providers, and community organizations. We overcame opposition from parts of the industry that would prefer not to disclose the rates they charge.
The bill provides the Department of Business Oversight the flexibility to set disclosure standards for small business lending. This bill would become the first small business truth in lending law in the country! Once again California leads the way. If you remember in October 2016, the JEDE committee hosted CAMEO, Opportunity Fund and Funding Circle for a legislative briefing that was very well attended, but no one thought anything would happen for a long time. So we’re grateful to Senator Glazer for his leadership and desire to support small business. The author has taken suggestions from both industry and advocates and earned our strong support. This bill will support small businesses in their quest for access to capital, growth, and success.
However, before celebrating SB 1235 still needs to be signed by the Governor. We need your help to make truth in disclosures the law in California! Here are some ways you can let the Governor know your thoughts:
- Send a letter to Governor Brown asking him to sign SB 1235 (click for a template). Email to email@example.com.
- Call his office at (916) 445-2841
- Send him a tweet @JerryBrownGov
If Governor Brown signs the bill, it becomes law on January 1, 2019. Before companies need to begin providing the disclosures, regulations will need to be developed by the Department of Business Oversight (DBO). CAMEO and our partners will be involved in that process to ensure the transparency standards chosen really do serve small business owners. (Our work is never really done, is it?)
Other resources for SB 1235:
- If you’re moved to thank your California state representatives, please do so.
- More information on SB 1235.
- CAMEO op-ed with Small Business Majority – Another Voice: Truth-in-Lending bill would benefit California’s small businesses
You can also pledge your support for SB 1235 by adding your name here: