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Last week, the Federal Trade Commission launched an inquiry into small business credit reporting firms, focusing on how they collect and report data about small businesses and market the reports. Credit scores, which are determined from business credit report information, are important for small business owners, and a strong credit history can make it easier to secure financing from lenders, investors and suppliers. Yet unlike credit reports for individuals, which are governed by the Fair Credit Reporting Act, there is no federal law that specifically outlines credit reporting processes and protections available to small businesses. The FTC is looking to shed light on the industry and its impact on small businesses.
To learn more about the FTC inquiry, click on this Inc. article.
By Rebecca Meiser
Contributor, Commerce + Communities Today and Small Business Center
ICSC champions small and emerging businesses in getting from business plan to brick-and-mortar.
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