DuTrac Community Credit Union applauded Rep. Bruce Braley (D-Iowa) for co-sponsoring legislation that would increase the member business lending cap.
Braley is a co-sponsor of the Small Business Lending Enhancement Act (H.R. 1418), which would raise the MBL cap from 12.25% to 27.5% of assets. Hearings on the Senate version are expected later this month.
In Iowa, several credit unions are at or near the cap and restricted from making further business loans, said Andy Hawkinson, president/CEO of the $495 million DuTrac in Dubuque, Iowa.
“On behalf of all Iowa credit unions, we greatly appreciate Congressman Braley's continued support of credit unions and we urge others in the Iowa delegation to co-sponsor this bill as well,” Hawkinson said.
One of those cooperatives experiencing MBL cap issues is the $653 million Collins Community Credit Union in Cedar Rapids, Iowa, the Iowa Credit Union League reported.
“Our credit union has been limited in our ability to make small business loans to our members because we have run up against this cap,” said Rick Benhart, CEO of Collins Community CU. “The legislation co-sponsored by Congressman Braley will help ensure we can meet our members’ small business lending needs and won’t have to turn them away because of an arbitrary limit imposed by the federal government.”
The Iowa league also recently thanked Braley for his efforts to increase business lending in the state.
Patrick Jury, president/CEO of the league, said it is estimated that the legislation would make more than $200 million of additional, “reasonably priced” credit available to Iowa small businesses in the first year and create more than 2,200 new jobs.