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WASHINGTON – In a letter to the leadership of the Senate Banking Committee, CUNA President and CEO Dan Mica stated that there is no reason to eliminate the thrift industry’s business lending cap of 20% while leaving credit unions’ 12.25% ceiling. He wrote that it is “inappropriate, and contrary to the intent of the Senate legislation, to remove all restrictions on small business lending by thrift institutions in the absence of evidence showing need for such a change. Thrift commercial and industrial lending accounts for a small percentage, 3.6%, of total thrift industry assets. Fewer than 10% of thrift institutions have more than 10% of assets in commercial loans, and most of those institutions have less than 15% of assets in such loans. In contrast, the credit union small business lending cap of 12.25% of assets is, by its very nature, far more binding and discouraging of new small business lending. The desire to expand business lending to members is among the top reasons cited for recent credit union conversions to mutual thrift charters.” Mica emphasized that CUNA does not opposed the thrift or banking industries’ relief for “burdensome restrictions on business lending,” but the needs of all current and potential business lenders need to be taken into account. [email protected]

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