Saying that credit unions could be sources of much-needed capital for small business, Rep. Paul Kanjorski last week introduced a measure allowing them to make business loans totaling up to 25% of their assets, up from the current cap of 12.25%.
"America's credit unions could help fill this void in small business lending, but statutory limitations have so far forced many of them to sit on the sidelines.," Kanjorski (D-Pa.) said in a statement.
The bill, which is co-sponsored by Rep. Ed Royce (R-Ca.), would raise the minimum dollar amount for counting a loan toward the MBL ceiling from the current $50,000 to $250,000 and exempt from the ceiling member business loans made to qualifying underserved areas and to nonprofit religious organizations.
"These changes to the current statutory restrictions on credit union member business lending will give credit unions currently serving the lending needs of their business-owning members the opportunity to help even more," CUNA President/CEO Dan Mica said in a statement.
NAFCU President/CEO Fred Becker said the bill is a "win-win solution that can produce bottom-line impact for small businesses and credit unions at no cost to taxpayers."
--cmarx@cutimes.com
"America's credit unions could help fill this void in small business lending, but statutory limitations have so far forced many of them to sit on the sidelines.," Kanjorski (D-Pa.) said in a statement.
The bill, which is co-sponsored by Rep. Ed Royce (R-Ca.), would raise the minimum dollar amount for counting a loan toward the MBL ceiling from the current $50,000 to $250,000 and exempt from the ceiling member business loans made to qualifying underserved areas and to nonprofit religious organizations.
"These changes to the current statutory restrictions on credit union member business lending will give credit unions currently serving the lending needs of their business-owning members the opportunity to help even more," CUNA President/CEO Dan Mica said in a statement.
NAFCU President/CEO Fred Becker said the bill is a "win-win solution that can produce bottom-line impact for small businesses and credit unions at no cost to taxpayers."
--cmarx@cutimes.com
