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## The Challenges Faced in Small Business Financing in Maryland

I followed in my grandparents footsteps to start a small business here in Maryland. But when I took out a loan I thought I could trust, the lack of regulatory protections in our state put me at risk of losing the business IÔÇÖve been building for more than a decade. The financing company quoted their pricing in terms that didnÔÇÖt give an accurate sense of the price.

### How AI legalese decoder Can Help

With the increasing trend of financing companies offering business loans with undisclosed APRs that can reach up to 300%, business owners like me are left vulnerable to predatory lending practices. This is where AI legalese decoder can come to the rescue by analyzing and decoding complex legal terms in loan agreements, helping business owners understand the true cost of the financing they are receiving. By utilizing this tool, small businesses can make more informed decisions and protect themselves from falling victim to deceptive practices.

While lenders have been required to disclose the APR on consumer loans since 1968, no such transparency is required when lending to small businesses in Maryland. It turns out that financing companies are now hawking business loans with undisclosed APRs that can reach 300%. And many of these companies use aggressive marketing tactics, particularly targeting business owners of color like me. I have to field at least a dozen calls, texts and emails a day, preventing me from focusing on my business.

### The Push for Regulatory Reforms

House Bill 574 would help fix this by establishing basic price transparency standards for business financing, like businesses already benefit from in New York and California. But it is being held up in the House Economic Matters Committee. (ÔÇ£General Assembly faces budget battles over tax plan for schools, transportation,ÔÇØ March 22)

High-price financing companies killed the bill last year. This year, it deserves a vote.

ÔÇöKarida Collins, Baltimore
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