NEW YORK (1/25/12)--The CEO/chairman of a CUNA Strategic Services provider, The Small Business Authority, touted raising credit unions' member business loans as a way to ease the nation's credit crunch in an article Tuesday on CNBC.com.
Barry Sloane, CEO/chairman of the The Small Business Authority, which is powered by Newtek, was among members of CNBC's Small Business Council to be asked what they hoped to hear during the president's State of the Union address to the nation Tuesday night.
Sloane outlined three topics small business owners are concerned with, including reducing the deficit and reducing government regulation. The third concern among small business owners was the need to "ease the credit crunch," he told CNBC.com.
One way to do that would be to allow credit unions to increase the cap on what credit unions can loan commercially, he said. He noted that if the cap is increased, the nation would have $13 billion more available nationally to lend to small business.
The Credit Union National Association and credit unions have been pressing for Congress to raise the member business lending limit to 27.5% of assets from the current 12.25% of assets. Doing so would mean $13 billion available to lend to small business owners. Injecting that amount into the economy would create roughly 140,000 new jobs at no cost to the taxpayer.