Raising the cap on member business loans would result in credit unions "straying further from their traditional mission of serving consumers…and would substantially increase the risk of exposure of credit unions," American Bankers Association President Edward L. Yingling wrote to Sen. Charles Schumer (D-N.Y.)

Schumer said last week he planned to introduce a bill on this subject because it would free up much-needed capital for small businesses.

But Yingling noted that credit unions and the federal and state agencies that regulate them "have little track record in evaluating the type of risks involved in commercial lending."

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