Over the past few years, credit card companies and small business owners have become more dependent on each other to conduct business. About 12 percent of 6 billion mailed credit card offers target small businesses, while their owners account nearly as much of all Visa and MasterCard charges, according to industry studies.

But with the development of the economic downturn, both are now struggling to stay afloat. And as small business owners continue to rely heavily on credit cards, credit card companies risk losing billions in revenue.

“This is the riskiest loan a bank can make,” said Ken Clayton, American Bankers Association senior vice president for card policy, to Business Week. “They have to charge money to get a return on that risk. If this were a traditional loan that had collateral that backs it, it would be a lot easier to lock in rates.”

To make up for such losses, credit card companies have subjected small business owners, among others, to higher interest rates and more annual fees – changing terms that make conducting business “like trying to build a house with blocks that keep changing shape,” said National Small Business Association chair Marilyn Landis.

But then came preliminary drafts of the Credit Card Accountability Responsibility and Disclosure Act. With promises to bar over-limit fees and end double-cycle billing, among other new protections, it soon gained support from both the National Small Business Association and the National Federation of Independent Business.

However, what President Obama ended up signing into legislation on May 22 only protects personal credit card users. Out of the 74 percent of small business owners who hold credit cards, 39 percent of them applied based on personal credit, said Chris Walters, National Federation of Independent Business manager of legislative affairs.

But while those particular business owners are protected, those who applied based on business credit are not. Those with accounts under Discover Financial Services are also not covered under the legislation, since both personal and business credit are considered.

Attempts to pass protections by both House and Senate members have so far failed. One, by Sens. Mary Landrieu, D-La., and Olympia Snowe, R-Maine, proposed to extend protections to businesses with 50 or fewer employees.

These heads of the Senate Committee on Small Business and Entrepreneurship have vowed to look into “other legislative vehicles.” In the meantime, Congress also voted to conduct a survey on small business credit card use over the next 12 months. With that, the National Retail Federation has advised the government to study interchange fees — what Visa and Mastercard banks charge business owners per credit card transaction.

Readers, what do you want Congress to know about your credit card use? What are your thoughts on the legislation? Let us know in the comments.