The American Bankers Association is urging grassroots supporters to contact their senators to oppose the most recent attempt to raise the cap on credit union member business lending.
An email from the banking group tries to get supporters to oppose S. 2231, a measure introduced by Senator Mark Udall (D-Colo.) and other MBL supporters to allow Senate Majority Leader Harry Reid (D-Nev.) to bring the bill to debate and possible vote on the Senate floor.
A previous version of the bill had been referred to Senate Committee on Banking, Housing and Urban Affairs where it was widely expected to die for this term.
“A small, but aggressive, group of fast-growing credit unions are pushing legislation that would allow the National Credit Union Administration to increase a credit union’s business lending cap from 12.25% to 27.5% of total assets,” the association wrote. “Though the legislation’s title – the Small Business Lending Enhancement Act – attempts to play on concerns for stimulating the economy and creating jobs, there is no provision that would limit new lending to small businesses.
“Please write to your senators today, asking them not to support the legislation, either as a stand-alone bill or as an amendment to other legislation on the Senate floor.”
Reid is anticipated to bring up the measure as early as mid-April.