Taxicab Medallions, Heirloom Tomatoes To The Resuce

WASHINGTON - The Competitive Enterprise Institute has published a paper suggesting that credit unions are a potential remedy to small businesses feeling the current credit crunch. A paper authored by Eli Lehrer and titled, "Taxicab Medallions and Heirloom Tomatoes to the Rescue," suggests that restrictions on credit union business lending should be lifted in order to increase the supply of credit to the small business market.

Lehrer calls on Congress to pass the Credit Union Regulatory Improvement Act (CURIA), saying it would allow the average credit union to make about $17 million in business loans, up from the current $10 million. "Multiplied across the nation's credit unions, this would thus make available about $4.25 billion in additional credit, much of which would likely go to small business." In fact, Lehrer goes on to call for powers beyond those that CURIA would grant. "Those who favor CURIA in principle should ask why the bill does not go further in lifting restrictions on credit unions' ability to make loans as they wish in accord with prudent business practices."

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