WASHINGTON -- Just two days before a hearing on jumpstarting the stalled economy, CUNA has not wavered in its attempts to convince lawmakers to eliminate the 12.25% member business lending cap.
CUNA said it sent letters to Reps. George Miller (D-Calif.) and Rosa DeLauro (D-Conn.), who chair the House Democratic Steering and Policy Committee, which is slated to hold a hearing on economic stimulus legislation on Jan. 7. The trade group urged the committee to consider removing the MBL cap as a way to curb the "troubling trend" of declining commercial availability at banks.
If the cap were removed, credit unions could potentially lend up to an additional $10 billion to the small businesses in the first 12 months of being granted the authority, CUNA President/CEO Dan Mica wrote. This, as banks are tightening their business credit reins, according to a Federal Reserve Board survey, Mica noted.
As a further incentive to consider eliminating the MBL cap, Mica wrote that doing so would not "cost the taxpayers a dime and does not increase the size of government."
CUNA has been vocal over the past few months on how CUs can help small businesses. In December, Mica wrote a letter to President-elect Barack Obama pointing out that lending at CUs is in demand in spite of the troubled economy.