WASHINGTON — Credit unions last week received a ray of good news on their goal of raising the cap on member business loans when Treasury Department Counselor Gene Sperling and House Financial Services Committee Chairman Barney Frank promised action.
Sperling, in response to a question from Frank at a May 18 hearing on expanding small business lending, said the Obama administration supports raising the cap in some instances and would send Congress a proposal that would accomplish that soon. He said it endorses a plan to lift the cap up to 27.5% if the credit union is well-capitalized, has done member business lending for at least five years and shows that it has done sound underwriting and servicing.
The proposal contains more restrictions, yet allows more leeway, than the language of the legislation currently pending on Capitol Hill, sponsored by Rep. Paul Kanjorski (D-Pa.) in the House and Sen. Mark Udall (D-Colo.) in the Senate.
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