Advocacy

Our advocacy vision is to help create an inclusive world in which all small business owners have the opportunity to make their dreams come true, and struggling communities become economically vibrant. To succeed, we need to change the broader systems impacting our work and the communities we serve.

Priorities

Establishing strong transparency standards in small business lending

Pass a federal Small Business Truth in Lending Act which would require lenders to be upfront in their pricing and terms
Support state-level legislation modeled after the robust Small Business Truth in Lending Acts in California and New York
Help implement and enforce Section 1071 of the Dodd Frank Act which requires lenders to collect and report data on who they extend credit to

Enhance state and federal support programs focused on underserved small business owners and communities

Pass legislation that would make the NMTC Program permanent, thereby incentivizing greater private investment in constructing housing, healthcare, and other high-impact projects
Ensure efforts to modernize the Community Reinvestment Act are in the best interest of underserved communities
Work with credit enhancement programs across the country to ensure more efficient processes
Urge Congress to provide continued funding for the CDFI Fund, supporting hundreds of mission-led providers of capital, housing, and more

Grow the digital and educational tools available to business owners

Expand broadband access for rural and underserved communities to ensure they have the digital tools necessary to grow their businesses
Invest more dollars into small business technical assistance programs so that small business owners have the tools and resources necessary to start and grow their businesses

Build stronger partnerships with policymakers and stakeholders

Build strong relationships with state and federal policymakers in addition to industry trade groups, fellow CDFIs and financial institutions, and other stakeholders
Foster effective public-private partnerships to extend more capital to small business owners, akin to the State Small Business Credit Initiative (SSBCI)

Impact at a Glance

$2.05For every dollar AOF lends in its five largest states, an average of $2.05 is generated in the form of new annual taxes, spending, and wages. (Ripple Effect, 2024)

3xAOF’s truck lending program creates a triple-bottom line impact, with significant benefits rippling throughout the borrower’s family, the economy, and the environment. (Accelerating Opportunity, 2019)

94%AOF helps small business refinance unaffordable loans. AOF has helped small business owners refinance loans that carried an average APR of 94%, with one loan reaching a staggering 358% APR. (Unaffordable, Unsustainable, 2016)

Advocacy Victories

1:
Enacted the first small business truth in lending acts in California (2018) and New York (2020)—the first ones in the country

2:
Reauthorized the State Small Business Credit Initiative with nearly $10 billion to support small businesses in the wake of the pandemic

3:
Created the California Investment and Innovation Fund with $50 million in funding for California CDFIs

What We’re Advocating Right Now

Truth in Lending Act (TILA) Advocacy

Individual consumers are protected by the Truth in Lending Act (TILA), which requires transparent disclosure of loan terms, fees, and APR of loans. Small businesses, however, are not covered by this law, leaving them vulnerable to misleading or irresponsible lending practices. For years, AOF has been concerned by this lack of transparency –– a problem that requires urgent action.

Learn More

A Thoughtful Community Reinvestment Act

Aspects of the CRA could be improved to reflect current banking trends and maximize impact. Given the COVID-19 pandemic and its long-term implications, it is crucial that banks are incentivized and held accountable to invest and engage in truly impactful activities that help minority and LMI communities and the economy recover from this multi-lateral crisis.