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Cheney backs CU issues on Bloomberg Radio
WASHINGTON (9/23/10)—In a Wednesday appearance on Bloomberg Radio’s Taking Stock with Pimm Fox, Credit Union National Association President/CEO Bill Cheney said that America’s credit unions continue to seek the opportunity to put their combined $800 billion in assets to good use for small businesses. One way that credit unions can put these assets into action is through lending to their business-owning members, and Cheney took the broadcast opportunity to support legislation that would lift the cap on member business lending (MBL) from the current 12.25% limit to 27.5% of a credit union’s assets. Cheney added that while the amount of business loans that are provided by banks continues to diminish, the number of credit unions bumping up against the arbitrary MBL cap continues to rise, as they seek to help their small business owning members deal with economic struggles and drying up credit from banks. Lifting the cap would result in $10 billion in new loans to small businesses--in just the first year that new authority was granted--creating over 100,000 new jobs, Cheney said. “We all know we need more jobs, and this is a great way to do it,” he added. CUNA underscores that this boost to small businesses comes at not cost to credit unions. Cheney noted that the MBL cap increase has the support of the Obama administration and many members of the U.S. Congress. He added that the only opposition seems to be bankers who do not want the competition. Bloomberg's Fox observed that it seems that banks don't want the competition--but they don't want to make the loans themselves. Cheney concurred. Cheney also underscored during the 30 minute interview that until 10 years ago, there was no ceiling on credit union MBLs.


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