Trump Proposed 10% Credit Card Rate Cap Effective January 20. Banking Groups Say Small Business Owners Will Lose Access to Credit.

President Trump announced Friday that he’s calling for a one-year cap on all credit card interest rates at 10%, effective January 20, 2026.

Current average credit card rates: 22.3%—the highest since the mid-1990s.​

If you carry a business credit card balance, this sounds great. $100 billion in annual interest savings for American cardholders.

But here’s the problem: Banking associations warned today that this cap will be “devastating for millions of small business owners” who rely on business credit cards.​

Why it matters

Small business credit cards aren’t regulated the same as consumer cards. If banks can’t charge 20-30% APR to offset risk, they’ll cut credit limits or cancel cards entirely for businesses with credit scores below 700. You won’t get a lower rate. You’ll get no credit at all.​

The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a joint statement today:

“Evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners“.​

Your Move

If you have a business credit card with a balance, pay it down before January 20. Banks may freeze or reduce credit limits when the cap takes effect.

If your limit is $20,000 and you’re carrying $15,000, the bank might drop your limit to $15,000 immediately—you’re maxed out overnight.​

If you don’t have a business credit card but need one, apply this week. After January 20, approval standards will tighten significantly.

Capital One, Citigroup, JPMorgan, Bank of America—all dropped 2-7% in stock price today on this news. They’re preparing to cut lending.​

If you’re a freelancer or small business owner, this refund is your overpaid taxes from July-December 2025 coming back to you.

But it’s not extra money—it’s your money that was withheld incorrectly.​

$370 Billion Tax Refund Season Starts January 26—The Biggest in U.S. History. You’re Getting $1,000 More Than Last Year.

The House Ways and Means Committee announced TODAY that the 2026 tax filing season will deliver $370 billion in total refunds—a 26% increase over 2025.

The average refund: $4,000 per taxpayer, with an extra $1,000 compared to last year.​

This is the largest tax refund season in U.S. history.​

Why the spike