Lobbyists for CUNA and NAFCU said today that Reps. Ed Royce and Carolyn McCarthy plan to introduce legislation this week to raise the cap on member business loans to as much as 27.5% of assets.
A spokeswoman for Royce (R-Cal.) declined comment and a spokesman for McCarthy (D-N.Y.) said the plan is to introduce the bill this week but the day is still being worked out.
“Given this year’s budget deficit is projected to reach $1.6 trillion, more stimulus spending is not an option,” the two wrote in a letter to colleagues seeking support for the legislation. “The Small Business Lending Enhancement Act will provide much needed financing for small businesses without spending a single tax dollar.”
The current cap on business loans is 12.25% of assets.
The bill is a companion measure to the bill introduced by Sen. Mark Udall (D-Colo.) last month and has 18 cosponsors.
Click here to read the text of Udall's bill S. 509.