WASHINGTON — In an effort to generate more momentum forlegislation to let credit unions make more business loans, the industry'slobbyists brought in business owners to tell their stories onWednesday.

“If it weren't for a credit union, I might be out of business,''said interior contracting company owner Jim Dobbins fromWinston-Salem, N.C. “They helped me when my bank decided my companywas too small to lend to.''

Dobbins credited Allegacy FCU with helping his firm grow from 32employees to 50 in the past two years. He added that thelegislation would enable more credit unions to do the same thingfor other companies.

Dobbins spoke to Credit Union Times following a newsconference held by the legislation's two main sponsors.

Wendell Wakefield, who owns a gas and oil company in Roswell,N.M., said he has had trouble getting additional credit to keep hisbusiness running and if the cap were lifted his local credit union,Roswell FCU would be able to lend him money.

“Last year was a tough year. I had to people off because of theeconomy. The additional capital will help me do more and hireadditional people,'' added Wakefield, who used to be on the boardof the credit union.

Dobbins and Wakefield are part of a Hike the Hill that CUNA issponsoring along with several small business advocacyorganizations.

Rep. Ed Royce (R-Calif.), the measure's main sponsor, said manypeople in the leadership are “intrigued,'' by the bill but declinedto assess its prospects for passing this year. He added that thebill, which would raise the cap from 12.25% of assets to up to27.5% of assets, is an approach to job creation that both Democratsand Republicans can agree on.

Rep. Carolyn McCarthy (D-N.Y.), the measure's other leadsponsor, praised those who came to lobby their representativesbecause “if we don't hear about people's concerns we won't doanything about the issue.''

The legislation would require that credit unions must bewell-capitalized, be at or above 80% of the current cap, have fiveor more years of member business lending experience and be able todemonstrate sound underwriting and servicing.

If a credit union's net worth ratio falls below thewell-capitalized requirement (currently 7%), it would have to stopmaking new business loans. It has 114 cosponsors in the House. Acompanion bill by Sen. Mark Udall (D-Colo.) has 22 cosponsors.