Your business could face serious disruptions if Congress fails to renew the Fair Credit Reporting Act (FCRA) before it expires in December. The FCRA has facilitated the creation of a uniform federal credit system, and if it expires, each state could legislate its own guidelines--creating a legal labyrinth for employers and business owners that would wreak havoc on the economy.

We didn't always have the integrated credit system we have in place now. Before 1970, credit was generally very localized--dozens of credit bureaus operated in different parts of the country and didn't necessarily share their information.

The effect was that customers could generally only obtain loans and credit cards from banks where they were already known. In contrast, consumers--including small businesses like yours--now can obtain instant credit for cars, credit cards, and even mortgages from a range of lenders all across the country. Because of FCRA, borrowers have had greater and cheaper access to America's credit markets.

That's critical because much of the spending power of both consumers and small businesses--the foundation of the U.S. economy--is based on credit. In fact, in 1998, almost half of all small businesses reported using personal credit cards as a means to obtain financing. Their ability to do this and rely on bank loans and -- when times are tough -- credit cards to keep them afloat may be jeopardized if FCRA is not renewed. A U.S. Chamber-commissioned study shows that as many as 41 million people may be denied new credit card accounts if FCRA were not to remain the standard.

Clearly, a system that allows for nationally uniform, objective, and fair credit standards is a winning proposition for everyone: lenders, small businesses, retailers, consumers, and the economy. However, the parts of the legislation that prevent states from overriding this uniformity are set to expire at the end of 2003, and Congress is deciding whether to make FCRA permanent. If it doesn't, at the end of this year, all 50 states will be free to implement their own changes to FCRA--which could lead to a potential patchwork of different rules and obligations.

The FCRA reauthorization issue affects all of us and is one of the Chamber's top priorities. Contact your members of Congress and remind them how important it is to the economy and how it affects you.

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This article originally appeared in uschamber.com Weekly, our free e-mail newsletter featuring commentary from Chamber President and CEO Tom Donohue, economic updates, regional news, and small business tips and tools. Read this week's complete issue or subscribe to uschamber.com Weekly.