CUNA is asking President Barack Obama to endorse credit union small business lending during his upcoming State of the Union speech to a joint session of Congress on Jan. 27.
In a Jan. 21 letter, CUNA President/CEO Dan Mica pointed that credit unions have continued to lend through the credit crisis as banks have largely pulled back from borrowers and potential borrowers.
"In fact, in 2009, credit union business lending grew by 11%, while similar lending by banks was down 15%. There is clearly demand for small business loans, and credit unions are trying to meet that demand," Mica wrote.
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"However, credit unions face a statutory cap on the amount of business lending they can offer their members. There is no economic or safety and soundness rationale for the cap. While the number of credit unions very close to the cap may be small, at recent growth rates, many more credit unions find the cap binding. The existence of the cap also keeps many credit unions from even engaging in business lending," he added.
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