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.
- Bill Number
- H.Res. 1267
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-05-07: Referred to the House Committee on Small Business.
- Last Updated
- 2026-05-20T19:46:01Z
AI-Generated Summary
Summary of H. Res. 1267 (119th Congress)
Purpose
This House resolution expresses the "sense of the House of Representatives"—a non-binding statement of opinion—that small business owners seeking financing have fundamental rights. It aims to promote fair lending practices to support small business growth, innovation, and job creation.
Key Provisions
- Background facts: Highlights that small businesses (99% of U.S. firms) created 61% of net new jobs from 1995–2024, drive economic growth, and often rely on financing (86% per Federal Reserve survey), but face irresponsible lending.
- Outlined rights for small business borrowers:
- Transparent, written pricing and terms that are clear and comparable.
- Products that avoid trapping businesses in costly reborrowing cycles.
- Underwriting based on the business's ability to succeed and repay (responsible lending).
- Honest communication from providers, brokers, and lead generators about options, fees, and conflicts.
- Fair, equal treatment, including protections like the Equal Credit Opportunity Act (ECOA, which bans credit discrimination).
- Respectful collections processes, akin to the Fair Debt Collection Practices Act (FDCPA, which limits abusive debt collection).
- No use of "confessions of judgment" (preemptive agreements waiving dispute rights).
- Resolved sense: These principles support main street businesses; Congress should use them as a framework for future laws and regulations.
Significant Changes to Existing Law
None. As a resolution, it does not amend or enact laws; it only states an opinion and urges future action.
Potential Impacts
- On citizens/small businesses: Symbolic support for better protections, potentially leading to future reforms that ease access to fair financing and reduce predatory practices.
- On government agencies: Encourages agencies (e.g., those enforcing ECOA/FDCPA) to consider extending protections to small business lending.
- No direct impacts on international relations or agencies beyond potential regulatory influence.
Main Stakeholders
- Primary beneficiaries: Small business owners (33+ million firms) seeking loans or financing.
- Affected parties: Financing providers, brokers, and lead generators, who would face pressure for more transparency and fairness.
- Others: Congress and regulators, urged to act on these principles.
Notable Legal, Constitutional, or Political Implications
- Legal: References but does not expand existing laws like ECOA and FDCPA (which mainly cover consumers, not businesses); signals push for similar business protections without creating enforceable rights.
- Constitutional: None direct, as it's non-binding and within Congress's free speech/resolution powers.
- Political: Bipartisan signal (introduced by Ms. Simon and Ms. Velazquez) for small business advocacy; referred to House Small Business Committee; could shape future bills on lending reform amid concerns over "irresponsible" practices like online/micro-lending.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Simon, Lateefah [D-CA-12]
Cosponsors (1)
Rep. Velázquez, Nydia M. [D-NY-7]
Recent Actions
- 2026-05-07: Referred to the House Committee on Small Business.
- 2026-05-07: Submitted in House
Bill Versions
- 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. — issued 2026-05-07 — PDF (3 pages)