The Independent Community Bankers of America announced Mondaythat a petition opposing credit union attempts to raise the memberbusiness lending cap has garnered more than 13,000 signatures fromcommunity bankers, bank employees and customers nationwide.

“ICBA and more than 13,000 constituents vigorously oppose legislation to expand the commercial lending powers oftax-exempt credit unions,” said Camden Fine, ICBA president/CEO.“Expanding the business-lending authority for taxpayer-subsidizedcredit unions – at the expense of taxpayers – would widen budget deficits at the federal, stateand local levels.”

S. 2231 and its companion bill in the House, H.R. 1418, wouldraise the current credit union member business lending cap from12.25% to 27.5% of assets. Senate Majority Leader Harry Reid(D-Nev.) said in March that the bill would see a vote on the Senatefloor, but that vote has not yet materialized.

The banker lobby group claims credit unions have a generous taxsubsidy and lighter regulations because they were established toserve people of modest means. Serving people of modest means is iswhy Congress placed a cap on credit union business-lendingauthority, the trade said.

If credit unions are to be allowed to expand into commerciallending, they should be taxed and required to comply with theCommunities Reinvestment Act, ICBA said in a release.

The petition is posted online at www.stoptheCUgrab.org.