,i #aacth ,,congress #ast ,session ,h4 ,r4 #bdai ,,in ,,the ,,house ,,of ,,representatives ,june #ah1 #bjac ,mrs4 ,lowey introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,truth in ,lending ,act to provide coverage under such ,act for credit cards issued to small businesses1 and for other purposes4 #a4 ,short title2 ,findings 7a7 ,short title ,this ,act may be cited as the ,small ,business ,credit ,card ,act of #bjac4 7b7 ,findings ,the ,congress finds as follows3 7#a7 ,economic growth has frequently been led by the creation of millions of new1 small businesses4 7#b7 ,today1 small business owners are severely limited in their ability to finance new business ventures because access to capital through traditional resources has been restricted4 7#c7 ,small businesses are being pushed into using credit cards to meet capital needs4 7#d7 ,this use of credit cards is especially true for innovative and rapidly growing businesses which lack the assets necessary for a traditional loan4 7#e7 ,in #bjab1 #ca percent of the small businesses surveyed used credit cards to meet their capital needs4 7#f7 ,in #aiic1 only #af percent of small businesses used credit cards as a source of financing4 7#g7 ,one-half of small businesses using a credit card carry a monthly balance1 and one-quarter of small businesses carry a monthly balance in excess of #aj1jjj4 7#h7 ,the average interest rate charged on small business credit cards is #ae4f percent4 7#i7 ,nearly one-half of small businesses with credit cards have reported a worsening of terms1 including increased interest rates1 fees1 and payment procedures1 making it more difficult to expand operations or grow business4 7#aj7 ,small business credit cards contracts do not include consumer protections provided to individuals under the ,,card ,act4 #b4 ,extending credit card protections under the ,truth in ,lending ,act to small businesses 7a7 ,definition of consumer ,section #ajc7;i7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjb7;i77 is amended-- 7#a7 by striking ,the adjective consumer1 used with reference to a credit transaction1 characterizes the transaction as one in which the party to whom credit is offered or extended is and inserting ,consumer4-- 7#a7 ,in general ,except as provided in paragraph 7#b71 the term consumer1 when used as an adjective to describe or modify a credit transaction or credit plan1 means a transaction or credit plan under which credit is offered or extended to 2 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,small business included under certain circumstances 7,a7 ,in general ,for purposes of any provision of this title relating to a credit card account under an open end credit plan1 the term #8consumer' includes any qualified small business4 7,b7 ,qualified small business ,for purposes of subparagraph 7,a71 the term qualified small business means1 with respect to any credit card account under an open end credit plan1 any business concern having #ej or fewer employees1 whether or not-- 7i7 the credit card account is in the name of an individual or a business entity2 and 7ii7 any credit transaction involving such account is for business or personal purposes4 7,c7 ,exclusion of small business after opt out effective date ,the term qualified small business shall not include any business concern described in subparagraph 7,a7 after the effective date of any election under section #ace7;b7 by the individual or business for which the credit card account referred to in such subparagraph has been established1 so long as such election remains in effect4 4 7b7 ,amendments to exemptions ,section #ajd7a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjc7a77 is amended-- 7#a7 by inserting other than a credit transaction under an open end consumer credit plan in which the consumer is a qualified small business after agricultural purposes2 and 7#b7 by inserting other than qualified small businesses after organizations4 7c7 ,business credit card amendments ,section #ace of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afde7 is amended-- 7#a7 by striking ,the exemption provided by and inserting 7a7 ,in general4--,the exemption provided by2 and 7#b7 by adding at the end the following new subsection3 7b7 ,qualified small business opt out from coverage 7#a7 ,notice of coverage ,the disclosures under section #abg7;a7 before opening a credit card account under an open end credit plan for a qualified small business shall include a clear and conspicuous disclosure-- 7,a7 that the qualified small business is treated as a consumer under this title and is subject to the requirements of this title as a consumer2 7,b7 that the business may elect1 in accordance with this subsection1 to be exempt1 under section #ajd7a71 from this title to the same extent as any business other than a qualified small business2 and 7,c7 of the procedures for making the election and for subsequently revoking any such election4 7#b7 ,election ,the ,board shall prescribe procedures for making an effective election under this subsection and for revoking any such election4 7#c7 ,prohibition on discrimination against qualified small business ,no creditor may-- 7,a7 discriminate against any business concern having #ej or fewer employees in connection with any credit card account of1 or any application for a credit card account by such business1 under an open end credit plan on any basis2 or 7,b7 require any qualified small business to make an election under this subsection as a condition for opening a credit card account1 or for providing more advantageous terms for any credit card account1 under an open end credit plan4 4