NEW YORK (12/7/12)--Congress should pass the Small Business Lending Enhancement bill and allow credit unions to lend more money to small businesses, Newsday wrote in an op-ed published Thursday. "It's a marriage the deficit-burdened federal government should bless," Newsday concluded.
The bill, introduced in the U.S. Senate by Sen. Kirsten Gillibrand (D-N.Y.), would create a good match between credit unions that have capital and small businesses that are have a difficult time procuring the capital they need to operate and expand, Newsday said.
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' member business lending (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.
"The change could boost lending to small businesses nationally by $10 billion in the first year, and in New York by $1 billion," Newsday said. "On Long Island, where there are 36 credit unions, the estimated increase in lending potential would be $320 million.
"The higher cap would be phased in for individual credit unions that demonstrate sound underwriting and business-loan servicing practices to the National Credit Union Administration, the agency that insures their deposits and oversees their lending," the publication added.
To read the op-ed, use the link.