Legislation to raise the member business lending (MBL) cap for credit unions is back in front of Congress. Rep. Ed Royce (R-CA) reintroduced legislation,
H.R. 688, on Thursday that would increase the MBL cap to 27.5 percent of assets from the current 12.25 percent of assets. Rep. Bill Posey (R-FL) is an original co-sponsor.
The bill would help credit unions lend an additional $13 billion to small businesses in just the first year and would not cost the taxpayers a cent. CUNA estimates that it will help small businesses create over 140,000 new jobs.
"Credit unions understand that in order for the economy to fully recover, small businesses need access to credit, which will help their businesses grow. Credit unions have capital to lend, a history of prudent and safe small business lending, and a mission to help provide access to credit to their members—including their small business-owning members. They just need Congress to enact your legislation," CUNA President/CEO Bill Cheney wrote in a letter of support for the bill. Last year, MBL legislation had strong bipartisan support with 144 co-sponsors in the House and 21 in the Senate. It will also be a major topic of conversation during Hill visits at the
CUNA GAC Feb. 24-28.