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Co-ops unite in support of MBL increase
WASHINGTON (12/11/09)--The National Cooperative Business Association (NCBA) has joined the Credit Union National Association (CUNA) to advocate for lifting the current 12.25% cap on credit union member business loans (MBL). In a recent action alert, the NCBA called upon its members to “help stimulate business lending” and come to the aid of “businesses and cooperatives around the country” by “urging” their Congressional representatives to support H.R. 3380, the Promoting Lending to America's Small Businesses Act. Rep. Paul Kanjorski (D-Pa.) is working with Reps. Nancy Pelosi (D-Calif.) and George Miller (D-Calif.) to include his MBL cap legislation, which would, among other things, increase the cap on credit union member business lending to 25% of a credit union's total assets, in a developing jobs bill. CUNA has estimated that expanding the capacity of credit unions to make business loans could result in $10 billion in new business loans through credit unions and at least 108,000 new jobs in the first year after enactment, with no additional costs to taxpayers. NCBA Spokesman Adam Schwartz told News Now that the NCBA “has seen firsthand the need for credit and loans to businesses,” adding that lifting the MBL cap for credit unions would serve as a “very positive development for job creation and cooperative growth.” The NCBA is the latest in a growing number of trade associations to back the MBL cap lift. These organizations, including the National Farmers Union, the National Cooperative Grocers Association and the National Association of Manufacturers, spoke in support of the vital role that credit unions play in providing capital to underserved communities and small businesses in an "open letter" ad published on Wednesday in various D.C.-based publications. CUNA has also communicated directly with legislators and the Obama Administration to state its case for lifting the MBL cap.
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