Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Bipartisan group urges House leaders on MBL cap lift
WASHINGTON (3/3/10)--A coalition of legislators earlier this week asked House Speaker Nancy Pelosi (D-Calif.) and House Minority Leader John Boehner (R-Ohio) to “do more to support America’s small businesses by modifying the statutory limitations that have currently prevented many credit unions from doing more to advance the economic recovery.” The letter, which was signed by 58 members of the House, specifically supported legislation introduced by Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.) that would lift the current 12.25% asset cap on member business loans serviced by credit unions to 25% of a given credit union’s total assets. The legislation would also increase the “de minimis” threshold for these loans to $250,000. Reps. Carolyn Maloney (D-N.Y.), Fortney Stark (D-Calif.) and Chellie Pingree (D-Me.), who were three of 34 new co-sponsors who agreed to support lifting the MBL cap following visits by credit union representatives during last week’s Governmental Affairs Conference, signed on to the letter. While “many financial institutions have pulled back on making small business loans as a result of the financial crisis” and regulators have noted that “banks—both large and small—have shrunk their business loan portfolios,” the letter noted that “credit unions remain willing to lend to their small business-owning members.” The letter also cited Credit Union National Association estimates which predict that lifting the MBL cap would result in $10 billion in new capital for small businesses, creating as many as 100,000 new jobs at no cost to American taxpayers. While the amount of small business loans would double to a total of 10% if the MBL cap is raised, the banking industry would still dominate the business loan market, with 90% of the total share of loans. “Any future jobs-creation legislation that the House considers” should include MBL legislation, the letter added.
Other Resources

RSS print
News Now LiveWire
July 's Fed Bank's "FedFocus" has some interesting articles: incl cost/benefits of $1 currency 2 coin conversion ttp://tinyurl.com/nybmnhh
9 hours ago
Do you wish you were a News Now subscriber? Go here: http://t.co/7evfBSjeMx
10 hours ago
Financial education for student body key part of Altura #creditunion, UC-Riverside partnership #NewsNow http://t.co/Xp6OJd66o6
11 hours ago
.@VTcreditunions gains 200 new FB followers in just 2 wks to reach 1,000 http://t.co/I89xJcv4Jg
11 hours ago
.@CUNA is testifying on reg relief Tues,July 15 at 2 p.m. be4 Hs Fin Serv Subc. Here is the agenda and witness list: http://t.co/yBRhlmdqHt
14 hours ago