Saying that credit unions could be sources of much-neededcapital for small business, Rep. Paul Kanjorski last weekintroduced a measure allowing them to make business loans totalingup to 25% of their assets, up from the current cap of 12.25%.
|“America's credit unions could help fill this void in smallbusiness lending, but statutory limitations have so far forced manyof them to sit on the sidelines.,” Kanjorski (D-Pa.) said in astatement.
|The bill, which is co-sponsored by Rep. Ed Royce (R-Ca.), wouldraise the minimum dollar amount for counting a loan toward the MBLceiling from the current $50,000 to $250,000 and exempt from theceiling member business loans made to qualifying underserved areasand to nonprofit religious organizations.
|“These changes to the current statutory restrictions on creditunion member business lending will give credit unions currentlyserving the lending needs of their business-owning members theopportunity to help even more,” CUNA President/CEO Dan Mica said ina statement.
|NAFCU President/CEO Fred Becker said the bill is a “win-winsolution that can produce bottom-line impact for small businessesand credit unions at no cost to taxpayers.”
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