The $447 billion jobs package that President Obama unveiled Thursday night during a speech to a joint session of Congress doesn't include support for raising the cap on member business loans.
Obama's proposal includes tax cuts and additional government spending aimed at encouraging businesses to hire more employees and to bring down the unemployment rate, which is currently 9.1%, according to the Labor Department.
CUNA, NAFCU and the congressional sponsors of the legislation had all encouraged Obama to include the MBL hike – from 12.25% of assets to 27.5% of assets – in his proposal. And credit union allies can still try to include the measure as the legislative package moves through Congress.
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"We know that credit unions are eager to put their capital to work to help sustain the recovery, and I will continue advocating for the government to simply get out of the way,'' Rep. Brad Sherman (D-Calif.), a cosponsor of the MBL legislation, said in a statement.
Although the Obama administration endorsed an increase in the MBL cap when Congress considered it last year, several lobbyists familiar with the administration's thinking indicated that the MBL provision wasn't included because they didn't want members of Congress to have to choose between banks and credit unions.
Obama's proposal calls for expanding the cut in the payroll tax, additional government spending to help states avoid having to lay off teachers, additional funds for unemployment insurance, and funds to finance the modernization of schools and construction of roads and bridges.
Obama told lawmakers that the program would be fully paid for and plans to spell out how he would finance it later this month.
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