A bill introduced in Congress this week would expand the powers of credit unions to make business loans.
The bill from Rep. Paul Kanjorski of Pennsylvania calls for raising the cap on business loans, currently at 12.25% of assets. It also would exclude some loans from counting toward the cap, including any for less than $250,000, certain loans made in underserved areas, and those made to faith-based organizations.
Credit unions have been trying for years to ease restrictions on business lending, without success. But credit unions have said they see the economic crisis as an opportunity to gain ground on the issue.
Kanjorski, a longtime credit union supporter, said his bill would help small businesses if enacted. "During this time of economic uncertainty, many businesses, especially small businesses, are facing extreme difficulties accessing credit in order to create and maintain jobs," he said. "By permitting credit unions to expand their lending to small businesses, we can work to turn around our difficult financial situation at no cost to taxpayers."
