A Wednesday House committee hearing on capital access must include CU business lending, CUNA has urged.
CUNA President/CEO Bill Cheney offered that suggestion in a letter to capital markets and government-sponsored enterprise subcommittee Chairman Scott Garrett (R- N.J.), and Ranking Minority Member Maxine Waters (D-Calif.) the day before a scheduled hearing on legislative proposals to facilitate small business capital formation and job creation.
Cheney said “it is clear that credit unions have a history of safe and sound lending, have consumer demand for our products, as evidenced through our growth, and have a willingness to help small business owners weather the current economic situation.”
CUNA said any serious discussion of access to capital for small businesses must include credit union business lending and the 12.25% member business lending cap.
There are approximately 175 credit unions with business loans amounting to more than 10% of their total assets that are at the cap, according to CUNA. Another 180 credit unions with business loans amounting to between 7.5% to 10% of their total assets are approaching the cap and will likely be capped within two to three years, the trade group said.
Bills that would raise the cap are pending in both the House and the Senate.