Some really great news for you, fellow business owner.

The House of Representatives today approved a bill, the Credit Cardholders’ Bill of Rights Act (H.R. 5244), 312-112 to stop credit-card companies from continuing to exercise harmful and anti-free-market practices that severely inhibit small-business owners ability to grow their business, hamstringing the U.S. economy. NSBA strongly urges the Senate to take-up companion legislation and send the message to America’s small businesses that Wall Street isn’t the only street in America that matters in Washington, D.C. Credit cards are critical to small businesses. Many small businesses lack the assets necessary for traditional bank loans and turn to credit cards as a vital source of capital. In a nationwide NSBA survey, 44 percent of small-business owners identified credit cards as a source of financing they had used in the previous 12 months — more than any other source of financing, including business earnings. Despite small-business owners’ increasing reliance — in 1993, only 16 percent relied on credit cards — nearly two-thirds reported in August that the terms of their credit cards are worsening.

“Imagine if I, as a small-business owner, was allowed to routinely change my terms of engagement with my clients at any time for any reason — it’s just unthinkable,” stated Larry Nannis, NSBA vice chair for advocacy and small-business owner from Needham, Massachusetts. “Yet, credit-card companies do this every day. All we are asking for is basic fairness — that credit-card companies be held to the same standards as any other business.” H.R. 5244 will codify the most significant regulatory changes recently proposed by the Federal Reserve Board (Fed). It is crucial that these proposed changes be codified to ensure their enactment and applicability in the future. The idea that Congress need not delve into this issue because the Fed already has is shortsighted.

The Fed easily could weaken their proposed rule before enacting it or in the future. As the Administration calls for a $700 billion financial bailout plan for some of the largest U.S. corporations, there are countless small-business owners struggling with an inability to garner financing, skyrocketing energy costs, and business loans out-valuing their home equity. Yet, small business is still charged with creating jobs — having created 93.5 percent of all net new jobs since 1989 — and driving the U.S. economy out of the current slump.

“The overwhelming majority of small-business owners are feeling the credit crunch, and this bill offers a tangible way to ease their pain,” stated Todd O. McCracken, NSBA president. “I certainly hope all the talk we’ve heard during this election cycle about the importance of small business isn’t just lip service.” For too long has the small business owner been pushed around by creditors and lenders, and finally here’s some relief. There’s no better time than now to start building your business credit and keep your business prosperous.