NAFCU has called on President Obama to include an increase in the member business lending cap as part of his new plan to create jobs.
In an Aug. 22 letter, NAFCU President/CEO Fred Becker made the case for the cap increase, listing several justifications including how raising the restriction on credit union business lending can provide small businesses with the capital they need to help spur job creation.
Obama is expected to announce his proposals in a jobs growth package in early September, the White House has said.
“Increasing the MBL cap for credit unions would allow them to supply much-needed capital to America’s small businesses, all without costing the American taxpayer a cent,” Becker wrote.
Pending legislation in both the Senate and the House would increase the MBL cap. Known as the Small Business Lending Enhancement Act of 2011, it has bi-partisan support, according to Becker.
He also pointed to Treasury Secretary Timothy Geithner’s May 25, 2010 letter to then House Financial Services Committee Chairman Barney Frank (D-Mass.) expressing the Treasury Department’s support for the same approach put forth in S. 509 and H.R. 1418.
Last week, the president was lobbied on the issue by an Iowa credit union CEO who met the president at a town hall meeting.