MBL Cap Legislation Heading Into April Showdown
Legislation that would raise the cap on credit unions' business loans to members is poised for a mid-April showdown in the Senate.
Although credit unions failed to get a member business lending expansion package, S. 509, added to the JOBS bill that was passed by the Senate, credit union lobbyists did manage to convince Senate Majority Leader Harry Reid (D-Nev.) to bring the bill to the Senate floor for an up or down vote. The vote had not been officially scheduled as of press time.
The American Bankers Association has begun urging its 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 rallies the troops against S. 2331. “A small, but aggressive, group of fast-growing credit unions are pushing legislation that would allow the NCUA to increase a credit union’s business lending cap from 12.25% to 27.5% of total assets,” the association wrote in its March 27 email. “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,” the association concluded.