Despite comments made by co-sponsor Sen. Chuck Schumer (D-N.Y.) April23 that suggested a vote on S. 2231 may be delayed, credit uniontrade associations continue to crash the net in support of theSmall Business Lending Enhancement Act.

Schumer was quoted in trade publications telling bankers that avote on MBL has been delayed until this summer. The comment causeda ruckus because credit unions have been anticipating a vote sinceSenate Majority Leader Harry Reid (D-Nev.) promised it inMarch.

The timing of the comment was suspect, as members of theIndependent Community Bankers of America were hiking the hill that week, lobbying against credit union MBL.According to the congressional contribution tracking websiteSopatrack, Schumer has received $20,250 from supporters of thebill, and $150,500 from those who oppose it.

CUNA Senior Vice President of Legislative Affairs RyanDonovan said despite the publicity, Schumer is “still very much onour side” when it comes to MBL.

“His spokesman's statement really enforces the reality of thesituation, that there are a number of competing issues on theschedule,” Donovan said. “That's something that's always beencommon knowledge, and it doesn't change what we need from creditunions and small businesses, to communicate with Congress why thisbill should become law as soon as possible.”

Schumer spokesman Brian Fallon was quoted as saying a votewasn't expected until May or even June. However, some tradepublications described May or June as “the second half of theyear.” 

NAFCU President/CEO Fred Becker said reports distorted Schumer'sremarks and agreed that Schumer is still in the credit unioncorner. In fact, Becker said it's his understanding Schumer toldbankers he supports credit unions on the issue.

Donovan said not much has changed since Reid promised the Senatevote. “There has always been a lot of competition” on the Senatecalendar. Legislation addressing postal reform, violence againstwomen, budget resolution, a tax bill, student loan reform and cybersecurity compete with S. 2231.

“Cyber security has been on the calendar since the beginning ofthe year,” he said. Donovan added that the Senate has an ambitiousschedule through May. Both the Senate and House will take a breakthe week of April 30 and will break again around Memorial Day.

Becker said postal reform had to be addressed by Congressbecause the Postmaster General had said he would start shuttingdown post offices May 15. The vote on postal reform was expectedApril 25.

Winning the vote is more important than when it happens, Donovansaid. Despite the news that the vote may not happen as soon ashoped, he said it's important for credit unions to continuelobbying members of Congress and recruiting small business ownersto speak on their behalf.

“Whether the vote is tomorrow, or three weeks from now, thebottom line is you want the votes, and the way to ensure that is toengage grass-roots support. The push we've had over the last threeweeks has been very helpful. Politics are won by the folks who showup,” he said.

If credit unions turn down lobbying efforts a notch as a resultof the Schumer comment, said CUNA Executive Vice President ofGovernmental Affairs John Magill, and credit unions come up shorton the vote, “we'd be sorry we hadn't asked everybody to contacttheir senators.”

Brad Thaler, NAFCU's vice presidentof legislative affairs, also agreed that the Senate would probablyaddress other legislation first. Thaler said that althoughlawmakers have been cautious to sign on in support of S. 2231, he'sconfident credit unions will get the 60 votes needed to secure asuper-majority to overcome any bipartisan challenge.

“I think a lot of people in the Senate view this as a fightbetween their friends and realize once they take a stand, they'reupsetting one side or another,” Thaler said. “They're hesitant todo that until they have to.”

Credit unions picked up some new coalition members in the MBLeffort in recent weeks, including several conservative,libertarian-leaning organizations who submitted a letter to Reidand Senate Minority Leader Mitch McConnell (R-Ky.). 

Organizations known for mobilizing the tea party movement,including the Heartland Institute, the Competitive EnterpriseInstitute, and Grover Norquist's Americans for Tax Reform, amongothers, went on record in support of raising the credit unionmember business lending cap to 27.5% of assets. And the groups werecritical of the banking lobby in the letter.

“It simply boggles the mind to suggest that the banking industryas a whole would suffer any damage from this bill. Banks currentlyhave a 95% market share,” the groups said.

Credit unions also picked up kudos last week from the ConsumerFederation of America, which expressed support for raising the MBLcap.

“Credit unions are especially deserving of this opportunity,”wrote CFA Executive Director Stephen Brobeck in a letter tosenators. “They have a strong record of serving consumers andcommunities, especially moderate-income areas that have beenparticularly hard hit by the recession. They have had much pastsuccess in providing low-cost, sustainable credit to consumers andsmall businesses.” 

Becker placed an opinion piece in The Washington Poston Sunday, April 22, in support of S. 2231. He went on theoffensive against bank lobbyists who have claimed the bill wouldonly benefit large credit unions seeking large commercialloans.

In a recent survey, Becker wrote, credit unions reported that44% of their portfolio was made up of loans with balances below$100,000, compared with banks that only have 8%, comparatively. Incontrast, loans of more than $1 million represent only 16% ofcredit union lending portfolios, compared with 68% of banks'.

Becker also took aim at previous legislative attempts to boostbusiness lending, including the 2009 stimulus bill, the 2010 SmallBusiness Jobs Act and credit enhancements that pumped up the SmallBusiness Administration's loan guarantee rate.

“None of these vehicles have made significant progress inimproving small business' access to capital,” Becker said. “Of the$30 billion apportioned in the Small Business Lending Fund, only$4.8 billion was actually dispersed.”

An online poll by American Banker revealed that its readers maynot be as opposed to raising the MBL cap as lobbyists would haveCongress believe. The poll, published April 20, revealed that while55% of readers oppose credit union small business lendingexpansion, 28% are in favor of it, and another 17% would approve ofit if credit unions are also required to maintain enough capital tocover potential losses.

The House version of MBL cap legislation, H.R. 1418, picked uptwo new co-sponsors the week of April 16, growing that list to 130lawmakers. Rep. Mazie Hirono, (D-Hawaii), and Rep. LucilleRoybal-Allard, (D-Calif.) now officially support of the bill.

Thaler said much of the industry's lobbying efforts have beenconcentrated in the upper house since Reid announced in March thatS. 2231 will go to a vote. Given the dynamics of legislation ingeneral, the Senate is a bid hurdle for passing any legislation,Thaler said. If MBL legislation passes the Senate, especially givenits broad and diverse support, it will send a strong message to theHouse to pick up and pass the bill.