New Bill Seeks to Raise the Cap on Credit Union Business Lending
Legislation that was introduced in the U.S. Senate this month is designed to make it easier for small businesses to borrow from credit unions, and for CUs to better serve their member businesses.
Called the Small Business Lending Act, this bill seeks to amend the Federal Credit Union act.
If passed into law, the SBLA would increase the credit union member business lending cap from 12.25% of assets to 27.5% of assets.
Basically, it would allow CUs to increase the scope of their lending to member businesses – allowing them to lend an additional $13 billion to small businesses across the U.S.
Proponents claim that the SBLA could assist with the creation of 152,000 jobs nationwide, in just its first year.
This legislation (S.2028) was introduced by U.S. Senators Rand Paul (R-KY) and Sheldon Whitehouse (D-RI). You can read the text HERE
It has the support of The Small Business Lending Enhancement Act include: Credit Union National Association, National Association of Federal Credit Unions, Competitive Enterprise Institute, R Street, Americans For Tax Reform, American Consumer Institute, The Realtor’s, and Progressive Policy Institute.
If you support this effort, and think it would be good for your CU, now would be a good time to call or write your elected officials. The Senate bill is similar to H.R. 1188, the “Credit Union Small Business Jobs Creation Act”, which was introduced in the House earlier this year.
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