WASHINGTON (UPDATED: 5/16/13, 12:30 p.m. ET)--Sen. Mark Udall (D-Colo.) today reintroduced legislation that would increase the credit union member business lending (MBL) cap to 27.5% of assets, from the current 12.25%-of-assets level.
Credit Union National Association President/CEO Bill Cheney thanked Udall for introducing the bill. "Your legislation is a commonsense economic-recovery and job-creation measure that would permit credit unions with experience in business lending to continue to lend to their small business members, without increasing the size of government," Cheney told Sen. Udall.
"When other lenders fled the market, credit unions stood with those in need," Cheney said. "Your legislation says to the credit unions that stood with their business-owning members, keep lending."
CUNA estimates the MBL cap change would help credit unions lend an additional $13 billion to small businesses in just the first year after enactment. This money, which would be made available at no expense to taxpayers, would in turn help small businesses create around 140,000 new jobs.
Reps. Ed Royce (R-Calif.) and co-sponsor Carolyn McCarthy (D-N.Y.) released similar legislation early this year. That bill, H.R. 688, has 94 co-sponsors.