Banks Getting Satisfaction On Jobs Bill Even As CU Provision Is Nixed

Register now

WASHINGTON-The Senate was expected to add an amendment to the jobs bill providing $30 billion in low-cost funding to community banks, but the bankers apparently have succeeded in blocking an amendment that would raise the cap on CU member business loans.

The $30 billion will be used to make low-interest loans to community banks, which will be required to use the money to make loans to small businesses. But the CU amendment, which would raise the MBL cap from the current 12.25% of assets to as much as 27.5%, appears dead for this Congress amid strong opposition from the banking lobby. The Senate is not scheduled to vote any other amendments to the bill before voting for final passage.

The credit union lobby, which has been working for years to get the limit raised, vowed one last push for the initiative and was calling credit union grassroots to contact lawmakers to push for the Udall amendement, particularly as the legislation currently offers funding for community banks to make small business loans.

For reprint and licensing requests for this article, click here.