In a town hall meeting Tuesday in Nashua, NH, President Obama announced a plan to channel billions of dollars to community banks to help spur small business lending. The intiative would create the $30 billion Small Business Lending Fund and would be created out of unused TARP funds. The plan didn't mention credit unions at all. Last week, CUNA and the LSCU sent out an Action Alert asking for letters to the President, Treasury Secretary Tim Geithner and your Senator. The Action Alert has been updated to include language about the Small Business Lending Fund. While credit unions aren't looking for TARP money, they would like the member business lending cap raised. CUNA CEO Dan Mica laid out the argument to CUNA News Now. "Credit unions tell me that they are not asking for a taxpayer bailout; they did not receive TARP money and did not want it anyway. Yet now, the administration wants to give taxpayer money to banks through TARP to convince them to make more loans--the same banks that have been refusing to make loans over the last year when it was needed most by an economy starved of capital," Mica said.
"Credit unions have been making loans over the past year and can make even more if legislation expanding their capacity to make small business loans is enacted. I hear credit unions say: 'Don't just subsidize the banks; let us help this country get back on its feet--without using taxpayers' money,'" he added.
To take part in the Action Alert, check out the Grassroots Action Center on the LSCU Web site.
Click here to write a letter to the President or Secretary Geithner. This area of the Web site is password protected. You will need to login to access it. The page can be found under the Governmental Affairs tab under Grassroots Advocacy. For more information, contact LSCU Vice President, Legislative Affairs/Staff Counsel
Will McCarty or LSCU Vice President, Legislative Affairs