ALBANY. N.Y. (12/10/12)--William J. Mellin, president/CEO of the Credit Union Association of New York (CUANY), refuted bank arguments against increased member business lending (MBL) authority for credit unions, in a letter to an area paper.
Mellin wrote a response to The Troy Record last week "strongly disagreeing" with a letter the paper ran by Frank Capaldo, head of the Independent Bankers Association of New York that opposes increasing small business lending (MBL) by credit unions.
"On behalf of New York's 421 credit unions, I strongly disagree with the opinions set forth by Mr. Capaldo,' Mellin wrote Thursday in The Troy Record. "Once again, banks are opposing credit unions' efforts to help small businesses access credit to help them grow and create much-needed jobs without offering alternatives to address the reduction of business credit by banks as a result of the recession.
"Mr. Capaldo states that the small businesses he spoke with claim they do not need access to more credit," Mellin continued. "How is it then that a recent poll commissioned by the American Sustainable Business Council, the Main Street Alliance and the Small Business Majority found 90% of small business owners believe that the availability of small business loans is a problem, and 60% have faced difficulty trying to obtain loans that would grow their small business.
"Further, the survey found that 90% of small-business owners support making it easier for community banks and credit unions to make loans to small businesses," Mellin added.
To read the letter, use the link.
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' MBL cap to 27.5% of assets from 12.25% so that more loans could be made to small businesses. CUNA and credit unions say that increasing credit unions' MBL cap would open up more opportunity to offer MBLs, inject $13 billion in business loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers.