With a new year comes a fresh round of proposed Federal and States legislation, and with it the Annual Strategy Meeting of the Innovative Lending Platform Association.

One year after merging with the Coalition for Responsible Business Finance (CRBF), the ILPA is dedicated to shaping the future of the small business lending industry; specifically the burgeoning online lending marketplace that greatly benefits small business across the country by improving access to capital.  

To ensure a healthy regulatory environment for online lenders, ILPA members work diligently to help legislators understand the implications that their proposed regulation may have on the small business lending marketplace. Some of the proposed legislation included;

At the State level:

  • Proposals to limit APR which could have dramatic implications for small business access to capital.

At the Federal level:

  • Established lending doctrine “True Lender” and “Valid When Made” legislation, which work to determine how loan rates and terms are transferred from the originator to the secondary market purchaser, have come under fire due to a recent decision by the Second Circuit Court of Appeals in Madden vs. Midland Funding.

Read more about this decision and how it could greatly limit small business access to affordable funds here in an article by Scott Stewart, CEO of the ILPA.

Another item discussed during the annual meeting was one cornerstone of the ILPA named the “Smart Box.” The “Smart Box” is a borrower disclosure document that allows borrowers to understand and compare the costs and fees of their loan proposals.

About the ILPA:

The Innovative Lending Platform Association (ILPA) is a leading trade organization representing a diverse group of online lending and service companies serving small businesses. United by a shared commitment to the health and success of small businesses in America, the ILPA is dedicated to advancing best practices and standards that support responsible innovation and access to capital for small businesses.