CU Trade Associations Turn Up Heat on Member Business Lending
After a last minute whirlwind of appeals to President Obama and Congress to consider legislation that would increase the member business lending cap, both CUNA and NAFCU are urging credit unions not to let up.
This week, the Senate is coming back from a five-week recess. The Small Business Lending Fund Act, which includes $30 billion in funds to encourage banks to lend more to small businesses, is expected to come up for consideration Sept. 13. It does not include a heavily promoted amendment drafted by Sen. Mark Udall (D-Colo.) that would increase the MBL cap.
"Given that the strength of the economy and labor force is strongly influenced by the health and well being of the small business community, lifting the arbitrary restriction on credit union's business lending ability is a common sense and cost effective way to ensure that credit worthy small businesses have the capital they need to help spur job creation," NAFCU President/CEO Fred Becker wrote.
Like CUNA, NAFCU is hoping an endorsement from Geithner coupled with the NCUA's position that it would be able to handle any modification of the MBL cap will offer extra assurance to skeptical legislators. Still, Cheney acknowledged there has been some speculation back and forth on passing the bigger bill. During a Sept. 7 conference call, Cheney urged league CEOs to contact every senator to support the Udall amendment. Cheney also named key lawmakers leagues should especially court.