Credit unions could make business loans totaling up to 25% of their assets-up from the current cap of 12.25%-under a bill introduced today by Rep. Paul Kanjorski (D-Pa.).
"During this time of economic uncertainty, many businesses, especially small businesses, are facing extreme difficulties accessing credit in order to create and maintain jobs," Kanjorski said in a statement. He said the bill would fix the problem by "using credit unions as a resource to boost lending to small businesses."
The bill, which is cosponsored by Rep. Ed Royce (R-Ca.), would raise the minimum dollar amount for counting a loan toward the MBL ceiling from the current $50,000 to $250,000 and exempt from the ceiling member business loans made to qualifying underserved areas and to non-profit religious organizations.
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According to some industry analysts, the measure could help credit unions inject up to $10 billion into the economy in the first year.
Sen. Chuck Schumer (D-N.Y.) has said he will introduce a bill on the subject and recently raised the issue with Federal Reserve Chairman Ben Bernanke during a hearing of the Senate Banking Committee.
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