Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CUNA to IWSJI Banks not doing enough small-biz loans
MADISON, Wis. (8/12/11)--The Credit Union National Association (CUNA) says that small-business lending statistics indicate banks are not doing enough lending to help small-business owners, according to a Thursday article in The Wall Street Journal. “Banks have requested less than $12 billion of the $30 billion made available by the last year’s Small Business Jobs Act, the Treasury Department has said,” wrote Emily Maltby in the article. “The government program offered low-interest funds to community banks so that they could boost small-business lending.” The amount banks are lending is not sufficient, CUNA says. “Congress last year gave the banks $30 billion to make small business loans, but the banks’ response has been tepid at best,” Bill Cheney, CUNA president/CEO, told the Journal. “Credit unions don’t need $30 billion in government assistance; we’re just trying to raise a lending cap in the law that’s arbitrary and outdated.” CUNA and credit unions are pressing Congress to increase credit unions’ member business lending (MBL) cap to 27.5% of assets from 12.25%. Doing so would open up more opportunity to offer MBLs, inject $13 billion in loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers, CUNA said. The article mentioned that Lister Hill CU in Muscle Shoals, Ala., and Provo (Utah) Postal CU had to turn down loans to small businesses because they were too close to the federally mandated MBL cap. CUNA shared the article with House and Senate congressional offices, accompanied by a message Thursday from Cheney, noting “how credit unions can help small businesses create new jobs at no cost to taxpayers. “Sen. Mark Udall (D-Colo.) and Rep. Ed Royce (R-Calif.) have introduced legislation, S. 509 and H.R. 1418, to help small businesses, and we encourage your member to show support by co-sponsoring this legislation.” To read the article, use the link.
Other Resources

RSS print
News Now LiveWire
Goodwill Industries latest to report data security breach http://t.co/gIaXNsT4Bk
13 hours ago
CUNA economist Schenk discusses regulators' focus on interest-rate risk. See CU Magazine: http://t.co/tW1p9rTSSv
14 hours ago
Fed issues annual report on general-use prepaid cards in gov't-administered payment programs. http://t.co/3zPhejSPZt
14 hours ago
Children in foster care face higher risk of identity theft via @NBCNews http://t.co/Dif0hCfBdA
14 hours ago
.@Cornerstone_CUL's leadership conference includes food drive for San Antonio food bank http://t.co/h2O8O4TxuD
15 hours ago