WASHINGTON (6/19/12)--The U.S. Conference of Mayors has encouraged members of the U.S. Senate to support "efforts to strengthen small businesses and local economies" by voting in favor of the Credit Union Small Business Jobs Act (S. 2231), which would increase the credit union member business lending (MBL) cap.
A resolution supporting S. 2231 was offered by Madison, Wisc. Mayor Paul Soglin, Seattle, Wash. Mayor Mike McGinn, Portland, Ore. Mayor Sam Adams and Pembroke Pines, Fla. Mayor Frank Ortis, and was approved during the conference. The mayoral conference was held in Orlando, Fla., between June 13 and 16.
S. 2231, which could come up for a Senate vote at any time, would increase the MBL cap to 27.5% of assets. The Credit Union National Association (CUNA) has estimated that lifting the MBL cap to 27.5% of assets, from 12.25%, would create 140,000 jobs and inject $13 billion in new funds into the economy during the first year after enactment. Both benefits come at no cost to taxpayers. S. 2231 currently has 22 Senate co-sponsors.
The mayors' resolution noted a recent joint Small Business Majority, Main Street Alliance and American Sustainable Business Council report that found that 90% of small businesses are having difficulty accessing credit, and said S. 2231 would allow credit unions to partner with local businesses to create jobs and strengthen neighborhoods and cities.
The resolution highlighted that the MBL cap adjustment, and the additional capital provided to small business owners, would come at no cost to taxpayers.
The "extraordinarily broad range of support" for S. 2231, which encompasses conservative think tanks as well as progressive community and minority advocacy organizations, was also noted in the resolution.