Sen. Mark Udall (D-Colo.) introduced the "Small Business Lending Enhancement Act of 2013" on Thursday.
The bill would raise the member business lending cap from 12.25% of assets to 27.5%. It's S.968 and it's similar to H.R. 688, which was introduced by Rep. Ed Royce (R-Calif.) in February. Udall was the primary sponsor of the Senate’s MBL bill in the 112th Congress.
“NAFCU thanks Sen. Udall and the bipartisan cosponsors of the 'Small Business Lending Enhancement Act' for recognizing the value of credit unions as providers of credit to small businesses,” said NAFCU President/CEO Fred Becker.
“Americans need jobs, and more money for small businesses means more jobs. Lifting the member business lending cap will allow our nation’s credit unions to do more to help our small businesses create jobs and help keep our economy back on the road to prosperity,” Becker said.
The legislation would extend the raised cap to credit unions that have met or exceeded at least 80% of its current cap for the past four consecutive quarters, that have at least 7% net worth, can demonstrate at least five years’ experience in MBLs and have the appropriate policies in place and experience in managing the loans.
“This legislation says to credit unions that stood with their business-owning members during the recent Great Recession to keep lending,” said CUNA President/CEO Bill Cheney. “Credit unions have capital to lend, a history of prudent and safe small business lending, and a mission to help provide access to credit to their members—including their small business-owning members. They just need Congress to enact Sen. Udall’s bipartisan legislation, as well as similar legislation pending in the House by Reps. Ed Royce and Carolyn McCarthy.”
Despite a promise from Senate Majority Leader Harry Reid (D-Nev.) that the MBL would get a vote during the 112th Congress, CUNA conceded on Dec. 5 that the measure didn’t have the 60 votes necessary to clear a consideration vote in the Senate as a standalone bill.