The banking industry's push to stonewall attempts to attach anamendment to a bill that would raise the member business lendingcap continues to draw the ire of the Wisconsin Credit UnionLeague.

“Banks have admitted they are unlikely to increase theirbusiness lending because of regulatory pressure that has forcedthem to restrict their lending,” said Brett Thompson, president/CEOof the Wisconsin league. “So, knowing full well they're not goingto step up to help, it's ill-conceived that Congress would allowbanks to block a credit union provision that could preserve jobsand get Wisconsin firms moving again.”

Congress has so far failed to attach to the Small BusinessLending Fund Act the amendment authored by Sen. Mark Udall(D-Colo.) that would raise the current cap on CUs' member businesslending from 12.25% of assets to 27.5% of assets.

Thompson said groups representing realtors, independentbusinesses, grocers, manufacturers, the Treasury Department and CUregulators all support proposals allowing CUs to increasecommercial lending to small businesses.

“But banks have stood in the way, threatening to oppose a billthat includes additional business authority for creditunions-although it comes at no cost to taxpayers and would helpgenerate loans that banks are unwilling to make,” Thompsonsaid.

Wisconsin CUs have increased business lending by 11% since March2009 to March of this year while banks' business lending decreasedby 19%, the league reported. The average business loan at aWisconsin CU is $174,772 and more than half of CUs' business loansgo to households with incomes below $50,000.