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H.R.3457 - Small Business Credit Card Act of 2009
To amend the Truth in Lending Act to provide coverage under such Act for credit cards issued to small businesses, and for other purposes.
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SECTION 1. SHORT TITLE; FINDINGS.
(2) Today, however, small business owners are severely limited in their ability to finance new business ventures because their access to capital through their usual resources has dried up, and the lack of access continues to grow.CommentsClose CommentsPermalink
(4) This use of credit card credit is especially true for rapidly growing businesses that are not traditional brick and mortar operations, and lack the assets necessary for a traditional loan.CommentsClose CommentsPermalink
SEC. 2. EXTENDING CREDIT CARD PROTECTIONS UNDER THE TRUTH IN LENDING ACT TO SMALL BUSINESSES.
(1) by striking ‘(h) The adjective ‘consumer’, used with reference to a credit transaction, characterizes the transaction as one in which the party to whom credit is offered or extended is’ and inserting ‘(h) Consumer-CommentsClose CommentsPermalink
‘(1) IN GENERAL- Except as provided in paragraph (2), the term ‘consumer’, when used as a adjective to describe or modify a credit transaction or credit plan, means a transaction or credit plan under which credit is offered or extended to’; andCommentsClose CommentsPermalink
‘(A) IN GENERAL- For purposes of any provision of this title relating to a credit card account under an open end credit plan, the term ‘consumer’ includes any qualified small business.CommentsClose CommentsPermalink
‘(B) QUALIFIED SMALL BUSINESS- For purposes of subparagraph (A), the term ‘qualified small business’ means, with respect to any credit card account under an open end credit plan, any business concern having 50 or fewer employees, whether or not--CommentsClose CommentsPermalink
‘(C) EXCLUSION OF SMALL BUSINESS AFTER ‘OPT OUT’ EFFECTIVE DATE- The term ‘qualified small business’ shall not include any business concern described in subparagraph (A) after the effective date of any election under section 135(b) by the individual or business for which the credit card account referred to in such subparagraph has been established, so long as such election remains in effect.’.CommentsClose CommentsPermalink
(A) 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 purposes’; andCommentsClose CommentsPermalink
‘(1) NOTICE OF COVERAGE- The disclosures under section 127(a) before opening a credit card account under an open end credit plan for a qualified small business shall include a clear and conspicuous disclosure--CommentsClose CommentsPermalink
‘(B) that the business may elect, in accordance with this subsection, to be exempt, under section 104(1), from this title to the same extent as any business other than a qualified small business; andCommentsClose CommentsPermalink
‘(A) discriminate against any business concern having 50 or fewer employees in connection with any credit card account of, or any application for a credit card account by such business, under an open end credit plan on any basis; orCommentsClose CommentsPermalink
‘(B) require any qualified small business to make an election under this subsection as a condition for opening a credit card account, or for providing more advantageous terms for any credit card account, under an open end credit plan.’.CommentsClose CommentsPermalink