Landrieu-Snowe Amendment Critical to Senate Credit Card Bill
SBCO | Quote | Chart | News | PowerRating -- The National Small Business Association is urging the Senate to approve the Landrieu-Snowe Amendment to the Credit CARD Act of 2009 (H.R. 627/S. 414) in order to guarantee that small-business owners are fully protected by the critical safeguards included in the bill. Small business reliance on credit cards is at an all-time high with 59 percent of respondents to the recent NSBA Small Business Credit Card Survey (NSBA Survey) using credit cards to finance their business--up from 49 percent just four months ago.
"America's small businesses are struggling to keep their doors open and are looking to Washington for help," stated NSBA President Todd McCracken. "Enacting the Landrieu-Snowe Amendment will send a strong message to the 26.8 million small businesses in this country that they are more than just a talking-point, that Members of Congress believe in their unique ability to create jobs and grow the economy, and that they will do whatever they can to help."
Although the credit cards of many--if not most--small-business owners are based on the individual owner's personal credit history, it is conceivable that issuers could legally consider them exempt from the Credit CARD Act's vital protections. This is because the bill amends the Truth in Lending Act (TILA), which for the most part applies only to "consumer" and not business transactions.
While a small-business owner who opens a personal credit-card account and uses it occasionally for business should be covered under TILA, it is unclear whether or not this legislation would protect a small-business owner who used his or her card exclusively or even primarily for business purposes. Eighty-six percent of respondents to the NSBA Survey reported using their consumer or business credit-cards primarily or exclusively for business purposes.
In addition to ensuring that the cards used by small-business owners are covered, the Landrieu-Snowe amendment would increase TILA's exemption of cards with credit limits of $25,000 or more to cards with limits of $50,000 or more. Fifty-two percent of respondents to the NSBA Survey reported having a credit card limit of $25,000 or more, essentially eliminating them from any of the protections of the Credit CARD Act of 2009 without the Landrieu-Snowe Amendment.
An early and outspoken proponent of credit-card reform, NSBA has been leading the charge to include small businesses in any credit-card reform bill, and applauds Sens. Mary Landrieu (D-La.) and Olympia Snowe (R-Maine) on their bipartisan leadership of this much-needed amendment.
Please click here for more information on NSBA's support of credit-card reform.
Since 1937, NSBA has advocated on behalf of America's entrepreneurs. A staunchly nonpartisan organization, NSBA reaches more than 150,000 small businesses nationwide and is proud to be the nation's first small-business advocacy organization. For more information, please visit www.nsba.biz
SOURCE National Small Business Association
http://www.nsba.biz
For full details on (SBCO) SBCO. (SBCO) has Short Term PowerRatings at TradingMarkets. Details on (SBCO) Short Term PowerRatings is available at This Link.
- Representative Murphy Authors First Amendment to Help Veterans Create Jobs and Develop Small Business - 05/26/09
- Moore Votes to Strengthen Small Business, Create Jobs, Rebuild Economy - 05/26/09
- TANNER APPLAUDS HOUSE FOR SUPPORTING SMALL BUSINESS - 05/26/09
- Enzi honors Wyoming's small businesses - 05/26/09
- Velazquez Hosts Small Business Workshop - 05/26/09
- More News >>
