Saying that the “small business lending market doesn’t belong to any one kind of financial institution,’’ Missouri Credit Union Association President Mike Beall on Friday urged one of Congress’ leaders on small business issues to support raising a cap on member business loans and to scrutinize the lending practices of banks.
In a letter to House Small Business Committee Chairman Sam Graves (R-Mo.), Beall noted there are four Missouri credit unions at or near their member business lending cap. They are Alliance CU in Fenton, Assemblies of God CU in Springfield, Mazuma CU in Kansas City and West Community CU in the St. Louis suburb of O’Fallon.
Beall also pointed out that there is $224 million worth of outstanding member business loans in the state. He estimated that raising the cap from 12.25% of assets to 27.5% of assets, as legislation that has been introduced in the House and Senate would do, would generate 1,676 jobs in the first year in Missouri.
Beall also urged Graves’ committee to hold an oversight hearing on whether banks are making sufficient use of a $30 billion loan fund Congress created to help community banks make more business loans.
Beall noted that “little or no evidence exists that banks are actually using those monies in the manner intended by the statute.”