Sen. Mark Udall's (D-Colo.) Small Business Lending Enhancement Act (S. 968), introduced on Thursday, "would allow credit unions with experience in business lending to continue to lend to their small business members, without increasing the size of government," Credit Union National Association President/CEO Bill Cheney said.
Udall's bill would increase the credit union member business lending (MBL) cap to 27.5% of assets, from the current 12.25%-of-assets level. Credit unions would need to be in good standing, and have a history of making business loans, to qualify for the cap increase. They would also need approval from the National Credit Union Administration.
CUNA estimates the MBL cap change would help credit unions lend an additional $13 billion to small businesses in just the first year after enactment. This money, which would be made available at no expense to taxpayers, would in turn help small businesses create around 140,000 new jobs.
"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 act," Cheney said.