Representatives of CUNA and NAFCU are using appearances attoday's joint hearing of two House committees to press their casefor raising the cap on member business lending from 12.25% ofassets to 35%, a move they say will enable credit unions to do moreto help jumpstart the economy.

Mid-Atlantic Federal Credit Union President/CEO Rick Wieczorekpointed out that his credit union is going hit the 12.25% cap soonand "we may soon face a situation where our efforts [to helpbusinesses] are curtailed arbitrarily."

Wiecczorek, who is testifying on behalf of NAFCU at a jointhearing of the House Banking and Small Business committees, saidhelping credit unions was only fair in light of efforts to helpother lenders, such as community banks.

He said if Congress enacts the Obama administration's proposalto lend leftover TARP funds to community banks lawmakers shouldinclude provisions to raise the MBL cap.

Ronald Covey, president/CEO of St. Mary's Bank, the nation'soldest credit union, expressed similar sentiments and noted thatbusiness lending is "part of the credit union DNA" going back to1908. Covey, representing CUNA, said the loan applications in hiscredit union's pipeline, would cause it to exceed its $85.3 millionlimit on business loans by $4.8 million.

Both CEOs said the NCUA was capable of ensuring that anyadditional lending was handled in a safe and sound manner. Theycited a letter sent this week by NCUA Chairman Debbie Matz toTreasury Secretary Timothy Geithner promising to strengthenregulation in this area if the cap is raised.