MADISON, Wis. (12/7/12)--A letter to the editor penned by Brett Thompson, president/CEO of the Wisconsin Credit Union League, published Dec. 3 in The Capital Times
, a south central Wisconsin newspaper, touted the benefits of increasing the credit union member business lending (MBL) cap.
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' MBL cap to 27.5% of assets from 12.25%. CUNA and credit unions say that increasing the 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.
"A whopping 80% of Wisconsin voters polled by the Wisconsin Credit Union League say they support the credit union small business jobs bill--legislation that would add $408 million of new credit for Wisconsin businesses through credit unions," Thompson wrote.
Other statistics noted by Thompson include:
- A 2011 study from Pepperdine University shows that banks are denying the majority (60% ) of loan applications.
- Credit unions have done all they can. Since the start of the recession in 2007, Wisconsin banks decreased their business lending by 2% while Wisconsin credit unions grew theirs by 55% to compensate.
- The legislation would add close to 5,000 jobs in Wisconsin the first year alone.
- Half of credit union business loans help families with income under $50,000.
- A bipartisan coalition of more than 30 organizations supports the legislation. They represent small businesses, the self-employed and the insurance, textile, realty, construction, automotive and technology industries.
- The legislation won't hurt banks. Banks hold 95% of U.S. business loans; this legislation won't dent their market share. In fact, almost half of banks support the legislation.
To read the complete letter, use the link.