Wednesday, March 09, 2011 12:10:00 PM
WASHINGTON - Yesterday, legislation to increase the credit union member business lending (MBL) cap was introduced in the U.S. Senate by Senator Mark Udall (D-Colo).
The measure (S.509) would increase the maximum MBL limit of 27.5% of a credit union's total assets.
Udall sponsored an MBL-increase bill last year, but when Congress adjourned without taking action on it, it became procedurally necessary to reintroduce the bill in the new 112th Congress.
"Unlike last year's legislation that handed community banks $30 billion to make new loans, Sen. Udall's bill will spur more small business lending by credit unions without burdening U.S. taxpayers or creating a new federal program," CUNA President/CEO Bill Cheney noted.
"Raising the statutory cap is a no-cost way to free credit unions to do more of what they are doing now, making safe and responsible loans to help their members start or grow their small businesses. After focusing last year on the banks, it is time for Congress to pass Sen. Udall's common-sense small business lending bill and recognize that credit unions want to be, ought to be, and deserve to be part of the solution," the CUNA leader said.
The language of the Udall bill closely reflects language drafted by the U.S. Treasury Department last year and endorsed by the Obama Administration.
Last week Udall made known his intentions to reintroduce the MBL increase at CUNA's Governmental Affairs Conference (GAC). Also at the GAC, Rep. Ed Royce (R-Calif.), a House champion of MBL legislation, said he intends soon to re-introduce a bill to increase the cap in that chamber.