NAFCU has called on President Obama to include an increase inthe member business lending cap as part of his new plan to createjobs.

In an Aug. 22 letter, NAFCU President/CEO Fred Becker made thecase for the cap increase, listing several justifications includinghow raising the restriction on credit union business lending canprovide small businesses with the capital they need to help spurjob creation.

Obama is expected to announce his proposals in a jobs growth package inearly September, the White House has said.

“Increasing the MBL cap for credit unions would allow them tosupply much-needed capital to America's small businesses, allwithout costing the American taxpayer a cent,” Becker wrote.

Pending legislation in both the Senate and the House wouldincrease the MBL cap. Known as the Small Business LendingEnhancement Act of 2011, it has bi-partisan support, according toBecker.

He also pointed to Treasury Secretary Timothy Geithner's May 25,2010 letter to then House Financial Services Committee ChairmanBarney Frank (D-Mass.) expressing the Treasury Department's supportfor the same approach put forth in S. 509 and H.R. 1418.

Last week, the president was lobbied on the issue by an Iowa credit union CEO who met the president at a town hallmeeting.