WASHINGTON–Legislation has been introduced in the Senate that would increase the current restrictions on credit union business lending. The Senate bill follows the House version, HR 3380, the Promoting Lending for America's Small Business Act, which would also enable up to an additional $10 billion in business loans if enacted.
Both the House and Senate measures are intended to lift the business lending cap with which credit unions have had to live since being included in 1998's Credit Union Membership Access Act.
The legislation has backing from both credit union trade associations. "Time is of the essence; with this action, House leaders should recognize that increased capacity for credit union business lending has broad support — despite cynical banker opposition — and begin moving the bill similar to this in the House as soon as possible," said CUNA President Dan Mica.
The Senate bill is being co-sponsored by Sen. Mark Udall (R-CO), Sen. Charles Schumer (D-NY), Sen. Joe Lieberman (I-CT), Sen. Olympia Snowe (R-ME), Sen. Barbara Boxer (D-CA), Sen. Susan Collins (R-ME) and Sen. Kirsten Gillibrand (D-NY). Backers of the bill claim that if passed the expanded credit union business lending will create up to 108,000 new jobs.
As is the case in the House, the Senate legislation is expected to be opposed by the banking industry.
"The only lobbyists who oppose giving credit unions the opportunity to do more small business lending are those who represent the banking industry," said Mica. "These are the same institutions that accepted billions of dollars of taxpayer money while restricting access to credit for consumers and small businesses, and bitterly opposing well-capitalized, not-for-profit credit unions to lend to their small business-owning members."
