Sen. Mark Udall (D-Colo.) introduced an amendment to the jobs bill moving through the Senate today to increase credit union business lending authorities.
The amendment would increase the statutory cap on credit union loans to member businesses from 12.25% of assets to 27.5% of assets on the condition certain regulatory requirements are met. The amendment has not come up for a vote and will likely wait until after the 4th of July recess.
Credit unions have been working on this legislation for at least half-a-dozen years. CUNA estimates that the legislation could create 100,000 news jobs and inject $10 billion into the economy.
"We commend Sen. Udall for offering this amendment that will do so much to help credit unions better meet their members' demands for small-business borrowing. About 350 credit unions are at or near the statutory lending cap, and that doesn't take into account others that want to start up a program but haven't because the current ceiling has a chilling effect on their entry into business lending," outgoing CUNA President/CEO Dan Mica said. He also highlighted that the legislation is at no cost to the American taxpayers.