Sen. Mark Udall (D-Colo.) introduced a bill to raise the cap on member business loans from 12.25% of assets to 27.5%.
The Small Business Lending Enhancement Act has 12 cosponsors, 10 Democrats and two Republicans.
Though he is introducing it as a stand-alone bill, it could be attached to another piece of legislation. The measure came close to passing last year but was derailed by procedural and partisan maneuvering.
Rep. Ed Royce (R-Calif.) has said he will introduce a companion measure in the House.
“We applaud Sen. Udall for reintroducing legislation that will help not only credit unions but our nation’s economic recovery. Economic conditions may be improving, but the nation is still in need of more jobs, and small businesses are still in search of affordable and accessible options for capital. Credit unions can help on both fronts,’ CUNA President/CEO Bill Cheney said in a statement.
“This legislation is a great vote of confidence for credit unions and small businesses. This is a critical time to lift the arbitrary 12.25% member business lending cap on credit unions,” said NAFCU President Fred Becker. “Through our challenging financial times, credit unions have continued to serve their members and been steadfast in their efforts to address the capital needs of small business.”