ABA Vows to Sink JOBS Bill if MBL Hike Included
If a House bill backed by the American Bankers Association in a new package of legislation designed to help small businesses create more jobs gives credit unions expanded lending authority, the banking trade group has vowed to pull back its support.
House Majority Leader Eric Cantor (R-Va.) recently introduced the Jumpstart Our Business Startups or JOBS Act. The bipartisan measure aims to increase capital formation and pave the way for small businesses to go public, among other initiatives.
“Now large credit unions are suggesting, in greedy and arrogant fashion, that if this clearly noncontroversial bill moves forward in the Senate, so should their very controversial proposal to increase credit unions’ business lending cap,” Keating wrote in a March 2 ABA newsletter. “One has nothing to do with the other, and it should stay that way.”
Keating said the credit union industry’s request to make more business loans in an effort to help turn the economy around is disingenuous and dangerous. Only 30 credit unions, mostly large ones, would stand to benefit from a higher MBL cap, he added.
“It’s important for credit unions to be in on the discussion,” McKechnie said. “As credit unions, we have to make sure Congress puts us in the context of helping small businesses.”
Keating said while most credit unions remain focused on their mission to serve individuals of modest means and are not near their commercial lending limits, those that are would pick up more small business loans if the MBL cap was raised but at the expense of banks that pay taxes. One consequence would be a net loss to the U.S. Treasury, he added.