A House version of legislation that would lift the credit union member business lending (MBL) cap to 27.5 percent of total assets is expected to be introduced this week, with Reps. Ed Royce (R-CA) and Carolyn McCarthy (D-NY) serving as the leading co-sponsors.
The bill will be known as the Small Business Lending Enhancement Act; which is similar to Senate legislation offered by Sens. Mark Udall (D-CO) and Olympia Snowe (R-ME) last month.
As many of you know, CUNA estimates that lifting the MBL cap could provide up to $13 billion to small businesses in the first year alone and create over 140,000 new jobs, at no cost to taxpayers.
The House members, in a statement, said that the MBL cap lift legislation "will be an important step in shifting our current economic path and putting Americans back to work."
Rep. Royce, a friend of credit unions, earlier this year told attendees at the CUNA GAC that increasing the amount of credit available to small businesses is a key way to build communities.
Rep. McCarthy is also a key co-sponsor of a House bill that would delay the implementation of the Federal Reserve's planned interchange cap. She also currently serves as the ranking minority member of the House Financial Services Committee's subcommittee on international monetary policy and trade.
Sen. Udall recently spoke in support of his bill on the Senate floor last week, calling on his fellow senators to help him "get government out of the way" and allow credit unions to increase their lending to small businesses.
The Senate bill had 18 co-sponsors as of late last week, and Senate Banking Chairman Tim Johnson (D-S.D.) has said he is interested in examining the MBL legislation in his committee.