Bloomberg News is reporting that Sen. Charles Schumer (D-NY) plans to push legislation that will raise the member business lending cap for credit unions. Sen. Schumer told Bloomberg that the legislation could be included in a new bundle of proposals the Senate is considering to create jobs. Schumer is quoted as saying, "It’s something I would like to see as one of our jobs bills.” This week bankers are on the Hill pushing to have MBL not included in any jobs bills. Bloomberg quotes Paul Merski, senior vice president and chief economist for the Washington-based trade group for community banks.
“You’re moving away from the credit unions’ tax-exempt mission,” he said. Most credit unions haven’t reached the current limit on business lending, leaving “so much unused capacity” that a higher cap isn’t needed, Merski said. However, credit unions have made small business loans for much of the last 100 years. CUNA's Senior Vice President for Legislative Affairs John Magill points out the increased cap would pump $10 billion of taxpayer-free money into the marketplace.