Kentucky Credit Union League President Wendell Lyons said hedoesn't think there is a silent majority of credit unions opposed to member businesslending legislation, as banker lobbyists suggested in a letter to members of the Senate this week.

However, the league leader said there's not a lot of enthusiasmfor S. 2231 among his member credit unions.

Only about 25% of credit unions in the Bluegrass State makebusiness loans, and of those, only 3% of their assets are in MBL,Lyons said. So, there isn't a pressing need to increase thecap in Kentucky, he said.

“All politics are local, as Tip O'Neill famously said,” Lyonssaid. “If you're not involved in business lending, you just don'tsee the need for it. And, they don't want to spend a lot ofpolitical capital on it. That's not what a lot of people want tohear, but that's reality.”

Lyons said credit unions are also concerned that businesslending could result in losses during a time when the corporate assessments are already “an anchor on theirearnings.”

“Like they say, you privatize gains and socialize losses,” Lyonssaid of the corporate assessment paid by all federally insuredcredit unions.

CUNA President/CEO Bill Cheney, who is currently in Polandattending the final day of the World Council of Credit Unionsconvention, told Credit Union Times he can understand thatMBL legislation is not important to every credit union in terms oftheir operations today; however, Cheney said it's important thatcredit unions are able to offer services to members in thefuture.

And, he said the current cap of 12.25% of assets is too smallfor most credit unions to justify the investment required to “makeit work.”

NAFCU President/CEO Fred Becker responded to the bankers'“silent majority” letter, saying, “It is a common-sense measurethat could spur more than $13 billion in new lending to help smallbusinesses create more than 140,000 new jobs – at no cost totaxpayers. It's time for the bickering to stop and for us to worktogether to put Americans back to work.”

Lyons, who is a CUNA board member, said despite the lack ofgrassroots activity in Kentucky, the league has been active workingits high-profile Republican senators: Minority Leader MitchMcConnell and MBL co-sponsor Rand Paul.

In fact, in discussions with McConnell, Lyons said the leaguetakes the position that there shouldn't be a business lending capat all.

“Don't want to paint the impression that we're not supportive ofefforts to get this legislation passed,” he said. “We're notopposed to it. We just can't get the grassroots amped up about it.But we think it's good and we want to support the industry and themovement.”