Years ago before my time in credit unions, CUNA and NAFCUdecided one would hold its Governmental Affairs Conference at thebeginning of the congressional session and NAFCU would target theend. The lines have blurred some and lobbying receives moreemphasis on the whole. CUNA, in conjunction with The Hillnewspaper but not with NAFCU, held an issue forum to help escalatethe member business lending expansion effort to new heights asCongress runs down the clock on this legislativesession. 

Word from NAFCU's Congressional Caucus was grim. Members ofCongress were quick to say they had a lot of very important issueson their plate before the session ends and then again in the lameduck. And they do.

What that means for credit unions is likely no member business lending expansion this year. It's notnecessarily that the issue is not worthy and should not getthrough. However, there's more than reason at play here. There'salso politics. 

Promoting credit union business lending expansion could come ata high cost politically as elections near and every dollar counts.The bankers are likely to put the kibosh on that with theircampaign contributions or lack thereof. CUNA has estimated thatexpanding business lending for credit unions could push up to $13billion into the economy and create as many as 140,000 new jobs inthe first year. These are impressive stats if achievable. It wouldtake time to set up programs, assure proper risk assessments andexpertise and of course budgeting. 

Still, Senate Majority Leader Harry Reid (D-Nev.) has in thelast couple of weeks reiterated to CUNA his promise for a vote onthe member business lending issue.

In the grand scheme of a $16 trillion national debt and therecent FOMC announcement that the economy may not growing fastenough to sustain the meager labor market improvements, creditunions' contribution to bolstering the economy ispennies. 

The thing about pennies though is that they add up to dollars.The credit union community took more than 100 years to reach $1trillion because it took the slow and steady approach. While theindustry has felt the impact of the economic malaise, it'scertainly has not been as crushing as it was to the Bear Stearns ofthe world. 

Given that credit union small businesslending increased 5.8% over the past year to $37.89 billionaccording to the NCUA's first-quarter data, while banks' decreased3.7% for the same period, at $584 billion, you can see thedisparate dollar amounts politicians and their staffs are mullingover. Credit unions, at this point, couldn't possibly make up forthe loss in bank lending, but again, taking it slow and steady canwin that race, too. Just not too slow. 

Credit union business lending has increased 53% since 2006,according to SNL Financial. Check in with some of the credit unions on thetop 10 list, like Digital and Bethpage, to see how they're makingit work for them. Credit unions can grow this into a bigger pictureissue. 

Direct from the stage at NAFCU's Caucus, Rep. Shelley MooreCapito (R-W.Va.) told credit unions they aren't making their casevery well as to the interest level in making business loan (see ourcoverage, page 9). She noted the disconnect between the need forincreasing the cap and the level of business lending being done.God forbid, Congress act on anything until it's a full-blowncrisis, but that's how it works.

Without a crisis, how can you cut through the cacophony ofpolitical rhetoric, such as Republican Jeb Hensarling's (Texas)parallel of Dodd-Frank to a drive-by shooting. I'm no Dodd-Frank fan, butthis language is extreme yet apparently what the member of Congressfelt was what he needed to use to break through the clutter.

Some nuggets from NASCUS' annual event that hopefully have notgotten caught up in the clutter:

NCUA Chairman Debbie Matz announced that the NCUA would bereconsidering the definition of small credit unions. Long overdue, but the agency's had itshands full.

One thing the NCUA's hands have been full of is Jim Blaine andthe SECU CAMEL debacle. Matz flat out wouldn't answer his question about why shewouldn't visit with the league, which was in follow up to anotherCEO's question on the subject, which Matz did answer.

NASCUS CEO Mary Martha Fortney's opinion piece (in last week'sissue) expressed concerns over the CUSO, loan participation and orinterest rate risk proposals from the NCUA due to their “theirsweeping preemptory nature” leaving “little flexibility for statesto authorize distinct powers for their credit unions, a disturbingtrend to NASCUS with respect to the long-term viability of the dualchartering system.”