Even after news that a vote on S. 2231 won't happen as quicklyas hoped, credit union trade associations say they aren't pursuingPlan B to promote legislation that would raise the member businesslending cap to 27.5% of assets.

Passing legislation is a process, not an event, stressed NAFCUPresident/CEO Fred Becker.Credit unions must remain unrelenting in their support of MBLlegislation, he said, and not give up or walk away.

“That's exactly what bankers want, for us to get discouraged andgo away, and if we do that, we're playing right into their hands,”Becker said.

The NAFCU chief said he's not surprised senators appear to beavoiding a vote on MBL, saying, “It's no shock to anybody inWashington because it pits bankers against credit unions.”

Both the banking and credit union lobbies are important toCongress, he said, and elected officials want to avoid alienatingone group in favor of the other, particularly in an electionyear.

CUNA Senior Vice President of Legislative Affairs Ryan Donovansaid his team has not changed strategy on MBL “because there isnothing there that would have prompted us to change strategy. Itcontinues to be what it has been.”

Sen. Tim Johnson (D-S.D.) was among the first to publicly sidestep MBLlegislation when he called it “a controversial matter” on theSenate floor March 19.

Johnson, who is not a co-sponsor of S. 2231, was speaking infavor of his amendment to the Jumpstart Our Business Startups Act, which would havereauthorized the Import-Export Bank. During his allotted time,Johnson addressed Sen. Mark Udall's (D-Colo.) attempt to attach credit union memberbusiness lending legislation to the JOBS Act.

“As chairman of the Banking Committee, I held a hearing on thisissue last June, and as my staff and I have told the leader and hisstaff since then, this is a very controversial matter. From thetestimony of the credit union and banking industry witnesses atthat hearing and the ongoing conversations over the past months, itis clear there is no consensus,” Johnson said. “If the Senatechooses to move forward on this issue, I urge the Senate to moveforward carefully.”

When asked if he thought Sen. Johnson's comments may haveinfluenced other senators to avoid a vote on S. 2231, SenateBanking Committee spokesman Sean Oblack sidestepped the question,saying, “On March 15th on the Senate floor, Majority Leader Reidcommitted to voting on member business lending. We are notaware that there has been a change.”

S. 2231 sponsor Udall said he still believes his bill will come to a vote thisyear.

“Sen. Reid has promised a vote on this bill, and I'm committedto making that vote happen,” Udall said. “There is a busySenate calendar this year, as I understand Sen. Schumer–aco-sponsor of the bill–was pointing out, but this will come to thefloor for a vote.”

When asked if Udall would sponsor MBL legislation again nextyear should it not receive a vote in 2012, Udall Deputy PressSecretary Alex McCarthy said, “Sen. Udall's goal is to allow creditunions to help increase access to capital for small businesses asquickly as possible, so for now his focus is on this year, not thenext.”

Sen. Charles Schumer (D-N.Y.) was quoted by AmericanBanker April 23 telling a banking contingency that vote on S.2231 wouldn't happen until at least the second half of theyear.

However, the Credit Union Association of New York's MikeLanotte, senior vice president of association services and generalcounsel, said Schumer is still “100%” in the credit unioncorner.

“We do not have any concerns with his support for the bill,”Lanotte said. “He's reinforced his commitment to legislation, he'sbeen true champion on this for us, and we have no doubt he willcontinue to do so.”

Jeremy Empol, director of federal governmental affairs forthe California and Nevada Credit Union Leagues, said SenateMajority Leader Harry Reid won't introduce an MBL vote on a whim;rather, he will first make sure “all his ducks are in a row.”

“He has to make sure it has the votes, and all his caucusmembers are taken care of and have no concerns,” Empol said,adding, “He's in the process of doing that now.”