Federal consumer financial protection laws require companies to treat people honestly and fairly. They also protect honest businesses from being forced to compete with those who break the law.
A lot happened in 2023. In many ways, the economic environment born out of the Covid-19 pandemic came to an end as subsidies such as the student loan payment pause and expanded SNAP benefits expired.
A rule from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCen) is taking effect in the new year with requirements for businesses to report data to create a database of ownership information.
The Consumer Financial Protection Bureau won’t be sitting still while awaiting a pending Supreme Court challenge to its funding. Upcoming elections will prompt the CFPB to push hard on key issues early in 2024. And as the bureau grows increasingly aggressive, regulated banks and other players will be more willing to go to court to challenge its rulings. Things may get messy fast.
Like with consumer lending products, business loan requirements weed out risky applicants and determine who receives the most attractive interest rates and terms. If you have good credit and stable financials, you’re more likely to receive funding and at lower costs. If you don’t, you might strengthen your application through other requirements for a business loan, perhaps by demonstrating strong sales figures and cash flow or by putting down money or collateral for secured financing. You might even write a persuasive business plan or loan proposal.
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