What is ‘E.S.G.,’ and Could It Affect Your Small Business?

January 18, 2023

Governor DeSantis wants to bar banks from basing lending decisions on a company's social and environmental profiles

What is 'E.S.G.,' and Could It Affect Your Small Business?

Once the Florida Legislature gavels into session on March 7, you might hear a lot about E.S.G. standards E.S.G. is short for environmental, social, and governance and Gov. Ron DeSantis doesn’t think it’s something banks and other lenders should consider when deciding whether to grant a loan to a big corporation or a small business. There’s growing concern that lenders may be using their own E.S.G. standards when deciding whether to lend money and that these standards remain invisible to borrowers, including big corporations and the small businesses that may interact with them. There’s also concern that the practice may be spreading to other sectors such as insurance, contracting, and civil litigation. NFIB is tracking the issue and paying close attention to Governor DeSantis’ proposed ban on the practice. We will continue to support legislation that protects small businesses from unfair lending practices. Click here to read Governor DeSantis’ statement on E.S.G. standards.

Topics:

Uncategorized

State:

Florida

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