Sen. Mark Udall (D-Colo.) will try to make his legislation to raise the MBL cap to as much as 27.5% of assets an amendment to the bill currently pending in the Senate to fund the Small Business Administration.
“Small businesses and their innovative ideas have traditionally been the engines for Colorado’s economic success. We need to foster a business environment that connects credit unions willing to lend with the small businesses in their communities that need the capital to grow and employ workers,” Udall said.
His spokeswoman said he plans to call up the amendment today or tomorrow. It’s unclear whether there will be a vote allowed on the measure or whether another senator will raise an objection to it, as has happened before, she said.
Eligible credit unions will be able to increase their small business lending to 27.5% of total assets, at a rate not to exceed 30% a year. Credit unions must be well-capitalized, be at or above 80% of the current cap, have five or more years of member business lending experience and be able to demonstrate sound underwriting and servicing. If a credit union’s net worth ratio falls below the well-capitalized requirement (currently 7%), it must stop making new MBLs.
Udall’s bill has 13 co-sponsors.