PEWAUKEE, Wis. (11/14/12)--Madison, Wis., Mayor Paul Soglin, who advocated passing a resolution at the U.S. Conference of Mayors supporting federal legislation to ensure small businesses can access member business loans (MBL) through credit unions, has been honored by Wisconsin credit unions.
The Credit Union Small Business Jobs Bill (S.B. 2231/H.R. 1418), which the resolution supported, would increase the ability of credit unions to extend additional credit to small businesses at no cost to taxpayers.
The bill would raise credit unions' MBL cap to 27.5% of assets from the current 12.25%. The Credit Union National Association says that raising the MBL cap would help inject $13 billion in new small business loans and 140,000 new jobs into the economy. In Wisconsin it would provide $458 million in new credit and create almost 5,000 jobs, said the Wisconsin Credit Union League.
Soglin became aware of credit unions' desire to fill the void for small business credit through conversations with Kim Sponem, president of Summit CU, Madison, and Paul Kundert, president of University of Wisconsin CU, also of Madison.
Sponem presented Soglin with a plaque and expressed appreciation for his work to gain the bipartisan support of 187 mayors nationwide to pass the resolution.
"Mayor Soglin understands that credit unions can fill today's huge void for business credit because they have billions available to lend, a 100-year history of making business loans safely, the support of federal regulators and the support of 84% of Wisconsin voters who, like Forbes magazine, see this as an absolute no-brainer," said Brett Thompson, president/CEO of the league.
The Conference of Mayors joins a bipartisan list of more than 30 organizations supporting the MBL measure, including groups representing small businesses, the self-employed and the insurance, textile, realty, construction, automotive and technology industries. Only the for-profit banking industry has opposed the bill.