The congressional effort to raise the member business lendingcap rides again.

Rep. Ed Royce (R-Calif.) announced Thursday he hasre-introduced legislation that would increase the MBL cap forcredit unions to 27.5% of assets.

H.R. 688, co-sponsored by Rep. Carolyn McCarthy, D-N.Y., has been described by creditunion trade associations as having very similar language to lastyear's House version, H.R. 1418. Royce and McCarthy have alreadyrecruited 34 additional co-sponsors for the bill, according to anannouncement from Royce.

“This legislation will not only allow credit unions to lend anadditional $13 billion to small businesses, but will create 140,000new jobs in the process,” Royce said. “With a stagnant job marketand unemployment rising to 7.9 percent, the Credit Union SmallBusiness Jobs Creation Act is an important step in gettingAmericans back to work.”

To qualify for the higher cap, a credit union must be wellcapitalized, have a history of member business lending experience,be operating near the current cap of 12.5% of assets for at leastone year, and receive approval from the NCUA.

“Credit unions understand that in order for the economy to fullyrecover, small businesses need access to credit, which will helptheir businesses grow,” CUNA President/CEO Bill Cheney wrote Royceand McCarthy in anticipation of the bill's reintroduction.

“Credit unions have capital to lend, a history of prudent andsafe small business lending, and a mission to help provide accessto credit to their members—including their small business-owningmembers. They just need Congress to enact your legislation,” Cheneysaid in his letter.

NAFCU President/CEO Fred Becker echoed the sentiment, thankingthe two for introducing the bill and calling it “a jobs bill, plainand simple” that would help invigorate the nation's economy byproviding lending to small businesses.

Both trades said they expect to face the same banker oppositionon Capitol Hill that has stymied efforts to raise the cap for atleast 10 years.

“The bill will not endanger the small banks in your community;the bill will not alter the nature or focus of credit unions; thebill is not inconsistent with the credit union mission or thepurpose of their tax status. This legislation recognizes thatcredit unions are working in their communities to help smallbusinesses, and it is important to enact even though the banklobbyists oppose it,” Cheney said.

H.R. 1418 never made it past committee despite attracting 144co-sponsors. Efforts to bring the Senate version of the bill, S.2231, to a vote were scrapped in early December when it became apparent it didn'thave enough support to pass.

Meanwhile, CUNA said it expects legislation that would allowcredit unions to invest in supplemental capital to also beintroduced shortly, as well as a bill that would eliminate theannual privacy mailing notice if the policy has not been changed inthe last 12 months.