Iowa City zoning change could regulate where short-term lenders operate

Short-term lending may help both businesses and consumers get by in tough times. However, the sector is out of favor with many state and municipal governments. Recently, the City Council of Iowa City, Iowa, voted unanimously to consider placing restrictions on short term lenders, The Cedar Rapids Gazette reports. The restrictions would ban the lenders from operating within 1,000 feet of daycares, schools, parks and churches. However, the ordinance is far from passed. Two more readings are required by the city council before it can come into being, the paper explains. Supporters of the ordinance cite short term lenders' relatively high interest rates as one reason to regulate them, while opponents allege the businesses serve individuals who are unable to access traditional lending resources. Iowa City would not be the only municipality in the state to impose such a regulation if the ordinance passed. The Daily Iowan notes that Des Moines, West Des Moines, Clive and Ames all approved similar restrictions on the industry.