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.

When you are reviewing your business credit rating, it is important to know that your business credit rating is a bit more volatile than your personal credit rating. If you have missed payments or have been late, particularly with large amounts of credit, your lenders will have a say in your credit report.

Not only does a good credit rating affect obtaining potential loans, it also can affect the vendors and the payment terms established. Therefore, it is crucial in all aspects of your business to pay your bills on time in order to maintain a good business credit rating. However, while it may take some time, there are a few steps to take to help you increase and/or restore your credit rating.

Keep on top of your credit reports. The first thing that you can implement is to review your credit rating on a regular basis. This will allow you to see where you are at, checking for errors or omissions. If you discover errors on your business credit report, it is important to follow the guidelines that the reporting agency has outlined. It may be worth a phone call to the institution that is reporting it incorrectly. Another thing to do is to remove expired accounts.

Pay your bills on time. This may seem basic, but your vendors and lenders have a huge impact on your credit report; therefore, paying them on time and for the amount that is due is important. Additionally, if you pay off your bills before the due date, you can request the suppliers to report this to the credit reporting agencies. This will have a positive impact on your credit rating and will help when you go to obtain further credit.

Keep your balances low. This may be harder when building your business at first, but as you continue to grow, if you can keep your unpaid balances on loans or invoices low, this will positively reflect your cash flow as well as show that you are financially disciplined. This will increase your credit rating over time.

Get a secured loan. When you decide to try and obtain a loan, going for a secured loan is a better option, particularly if you have collateral tied to your loan. The reason secured loans are a better option is that they will reduce the interest due, plus it will demonstrate to other lenders and vendors of your credit worthiness, not to mention strengthen your credit history.

Don’t max out your credit limit. There may come a time when you need to use it, and if you have maxed out your limit, that will have an adverse impact on your credit rating. What looks positive on your business credit rating is a lot of unused credit sitting waiting for you.

In essence, when you are trying to build up your business credit worthiness, ensure that you can pay your bills and on time, leave room for unused credit when you need it, obtain secured loans when needed, and check your credit report regularly to make sure that there are not any errors or omissions. Taking proactive steps to increase or correct your credit rating reflects positively with both lenders and vendors.