The newly-introduced Small Business Lending Enhancement Act provided another opportunity for the Minnesota Credit Union Network to continue its press for raising the member business lending cap.
Mark Cummins, president/CEO of the Minnesota network, penned an op-ed in the March 15 issue of Finance & Commerce saying the lack of available credit for small businesses could be remedied by Minnesota credit unions if the cap on credit union business lending activities were lifted.
Currently, credit union member business lending is capped at 12.25% of assets. Cummins said the Small Business Lending Enhancement Act, introduced March 9, would raise that cap to 27.5% of assets, which would allow “experienced, well-capitalized credit unions” to inject an estimated $150 million into Minnesota’s economy, creating up to 2,000 new jobs. He also pointed out that this legislative action would stimulate the economy at no cost to taxpayers.
Cummins said credit union member business lending has grown 15% over the last year while bank business lending has decreased 11%.
“And credit unions could do even more if given the capacity, allowing for greater capital expenditures, greater economic activity and, ultimately, the creation of more jobs,” Cummins said.