New Survey: Majority of Business Owners Oppose Credit Rate Cap Proposal, Rely on Cards to Run Their Operations
Key Findings:
● Credit cards are vital to the standard operating model for small and Hispanic-owned businesses with 82.7% of respondents affirming that they currently use a business credit card.
● Credit cards are critical no matter the industry or business size. Across every major industry, over 80% of business owners used a credit card. Over 15 industries were represented in the survey results, including health care, agriculture, and construction.
● Nearly 70% of small and Hispanic owned business owners oppose proposals to cap credit card interest rates that would limit access to credit. For most entrepreneurs, credit cards are mission-critical. 64.4% of respondents rate them as ‘important’ or ‘extremely important’ for daily operations.
● Over half of respondents would experience operational delays, lost opportunities, price increases, financial hardship and/or reduced productivity if their credit were reduced or eliminated.
● Business owners clearly prioritize access to capital over price controls. Nearly 65% of business owners do not want rate caps that would restrict access to credit. Looking at the extremes, over 40% of respondents ‘strongly oppose’ the rate cap, while just 7.3% strongly support it.
● If credit were reduced by 50%, a likely reality for many small businesses upon the implementation of a rate cap, 78.6% of respondents would expect operational harm.
What small businesses are saying about the importance of credit cards to their businesses:
● A restaurant owner in Texas shared, “being able to buy inventory [with my credit card] upfront and pay it off as revenue came in kept my doors open during uncertain months.”
● “When supply costs jumped, my credit card gave me flexibility to restock without cutting hours and wages,” stated a California retailer.
● A Nevada auto repair shop owner noted that “parts are expensive and customers expect fast service. A credit card lets me order what I need right away.”
Javier Palomarez, President & CEO of the USHBC, released the following statement on behalf of the organization:
“Our survey made it crystal clear that business owners understand the downstream effects of price controls, and overwhelmingly reject policies that reduce access to credit – even if that policy is framed as consumer protection. Studies have repeatedly shown that implementing a rate cap will negatively impact nearly every American with a credit card. For our entrepreneurs and business owners, this means lost opportunity, operational delays, and financial hardship.”
Palomarez continued:
“Our leaders in Washington must tread carefully when regulating such a critical and powerful tool for main street America. After all, it's our community that creates over two thirds of new jobs and generates almost half of our GDP. While the affordability crisis is real and urgent, I implore our elected officials to pursue an alternate avenue of relief. After this survey, it’s clear to me that small business owners do not want credit card rate caps. “
To learn more, follow @myushbc and @JPalomarez on X.
Visit ushbc.com/join to become a member today.
About the USHBC
Javier Palomarez is the President & CEO of the United States Hispanic Business Council (USHBC). The USHBC is a leading voice for the small business community. A 501(c)6 non-profit organization, the USHBC focuses on the success of American small businesses by ensuring they have a voice in the national dialogue. The USHBC is a nonpartisan organization.
Katherine Machado O'Hara
The Oxígeno Project
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