Trump's 10% Credit Card Cap Hits January 20. Your Business Line Just Got Smaller
Plus: $370 Billion Tax Refund Season Starts in 14 Days—Are You Ready? | Monday, January 12, 2026
– 9 min read
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.
