MADISON, Wis. (3/24/10)--Several media reports--including Sunday’s Parade
magazine--this week focused on consumers trying a credit union, and credit unions’ push to increase member business loans (MBL) and lift their MBL cap. Some national media outlets advised consumers to take a good look at credit unions as an alternative financial institution. Some examples are:
* Sunday’s Parade magazine featured advice for consumers on “modernizing [their] money management.” One of the tips on building savings recommends that consumers look to credit unions to obtain higher interest rates. It points readers to www.cuna.org to learn more. To read the article, use the link. * In a Tuesday Walletpop Walletblog post, consumers who are trying to obtain a car loan are told: “This might be a good opportunity to determine whether you qualify for membership in any of your local credit unions, as credit unions typically offer very competitive rates for auto loans.” To read the post, use the link. * A Sunday article from the NBC affiliate in Dallas and Fort Worth, Texas, highlights how consumers are moving to local credit unions and community banks from larger national banks, and how a national grassroots effort called “Move Your Money”--which promotes this move--is gaining popularity. “The benefits of being a member of the credit union is that you don’t have those fears that customers of larger banks typically have,” Dallas CU member Dizette Weathers-Maxfield told nbcdfw.com. To read the article, use the link.
Other media outlets have chronicled how credit unions are attempting to expand their small-business loans by asking Congress to lift their MBL limit. Some examples are:
* The Arizona Capital Times mentioned Monday that because credit unions “have been less affected by recession than other financial institutions,” they are looking for more authority under regulations to make more business loans to their members (azcapitoltimes.com). “All they need is an act of Congress,” the article said, adding that “Arizona’s 54 credit unions serve more than 1.5 million members ...” * A letter to the editor by John Hirabayahsi, president/CEO of Community First CU, Jacksonville, Fla., published Sunday in Jacksonville.com urges an increase in the 12.25% cap on credit unions’ small business lending to 25%. “With a cap increase, credit unions would be able to infuse an additional $10 billion to assist struggling small businesses in the first year alone,” he wrote. Hirabayashi added, “All this will take is support from Congress to raise the credit union member business lending cap.” * A Thursday article on KNDO.com discussed how state of Washington credit unions are ready to issue more commercial loans to small businesses if Congress raises the lending cap. “As of now, Washington credit unions are responsible for 3.4% of business lending, whereas banks control over 96% of lending,” said KNDO. “Here … the demand for credit unions continues to grow, even for small businesses.” To read the article, use the link.