Illinois State Senator Jacqueline Collins is sponsoring legislation to regulate lenders that make loans to businesses in the state.
The Chicago Democrat says she wants to protect small businesses from some online financing companies... who can charge high interest rates and fees.
Collins says one small businessman who used this kind of financing for quick cash is still trying to recover... years later.
"It appears to be an easy way to get cash, but it is a total nightmare."
The proposal would require lenders to disclose the annual interest rate for a loan and limits fees. It wouldn't apply to banks that are already regulated like national and community banks, and credit unions.
But critics of the plan say the it would stop small businesses from getting the financing they need to grow.