May 22, 2018  
 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Small Business News for Entrepreneurs

 

Small Business Finance News

 

Fed Outlines Small Business Credit Card Policy

Written by Ken Gaebler
Published: 10/14/2010

Report says that consumer protections outlined in the Credit Card Accountability Act do not apply to small businesses

According to a report by the Federal Reserve Board, owners of small businesses are not entitled to the same protections as consumers under the recently passed Credit Card Accountability Act.

Entrepreneur Finance

In the report, the Federal Reserve claims that because small businesses have a higher line of credit than consumers, the banks are taking more risk and therefore need to be able to increase interest rates more rapidly. Without this ability, banks would not lend out as much money based on a higher level of risk.

According to the report, small businesses that are creditworthy can look forward to favorable treatment by credit card companies.

The small businesses deemed most creditworthy may be offered relatively large lines and low interest rates. Little information exists on the actual rates small business cardholders currently face, but available evidence indicates that the range of potential annual percentage rates on small business cards is similar to that of consumer credit cards.

The chairman of the Federal Reserve, Ben Bernake, was in the news for small business recently when he visited the headquarters of Cardiobotics in Pennsylvania. The Pittsburgh Post-Gazette reports that the visit was part of the chairman's ongoing listening tour. 

Have Friends Who Might Like This Article?

Tweet via @gaeblerdotcom Share this on Twitter

Let them know on LinkedIn

Ready to Learn More? We Think You Might Like These Articles:

 


About Our Small Business News

Our reporters publish news articles for entrepreneurs every day. Our small business news articles review trends in small business, analyze the impact of new government policies, present relevant entrepreneurial research findings, and cover many other topics of interest to small business owners.

 

 

Additional Resources for Entrepreneurs

Help for Native American Entrepreneurs

Resources for Gay Entrepreneurs

Businesses for Sale

Online Entrepreneur Tools

Economics

Lists of Small Business Incubators

Lists of Angel Investors