Chicago, IL – As Illinois lawmakers prepare for discussions on commercial financing disclosure legislation, the Hispanic Business Alliance is urging support for balanced transparency standards to preserve access to critical small business funding options.

The Alliance supports HB 3477, sponsored by Leader Dagmara Avelar, which would establish clear disclosure standards for commercial financing while recognizing the distinct structure of sales-based financing used by many Illinois small businesses.

“For many Latino entrepreneurs and small business owners, access to flexible capital helps unlock growth opportunities and supports long-term business success,” said Julio Fuentes, President of Hispanic Business Alliance. “HB 3477 promotes meaningful transparency without creating unnecessary barriers that could limit financing options for the communities we serve.”

HB 3477 requires standardized disclosures that allow business owners to understand key financing terms, including total cost, repayment structure, projected payments, and potential fees. The legislation also introduces new protections against deceptive broker practices and establishes oversight through the Illinois Department of Financial and Professional Regulation.

Supporters say the bill strikes an important balance by improving transparency while avoiding disclosure models that do not align with revenue-based repayment structures. Small business advocates warn that applying annual percentage rate calculations to financing products that do not operate on fixed repayment schedules could create confusion rather than clarity for business owners.

Illinois small businesses, particularly those in Latino and minority communities, often face challenges accessing traditional sources of capital. Sales-based financing has emerged as an important tool for businesses seeking funding to expand operations, manage cash flow, and invest in new opportunities. Revenue Based Finance Coalition members provide significant capital to Illinois businesses each year, supporting industries ranging from restaurants and trucking to retail and trade services.

“As lawmakers work toward consensus, we encourage policies that reflect how small businesses actually operate,” Fuentes added. “Transparency should empower entrepreneurs, not reduce or confuse the choices available to them.”

The Hispanic Business Alliance looks forward to continued collaboration with legislators, industry participants, and advocacy groups as discussions move forward.

About the Hispanic Business Alliance
The Hispanic Business Alliance (HBA) is a national organization dedicated to advancing economic opportunity, entrepreneurship, and small business growth within Hispanic and Latino communities. HBA works with business owners, policymakers, and industry leaders to promote policies that expand access to capital, support responsible innovation, and strengthen the small business ecosystem. Through advocacy, education, and collaboration, the Alliance champions solutions that empower entrepreneurs, create jobs, and drive sustainable economic development.