Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Report Says Small Biz Unmet Capital Needs Harm Economy
WASHINGTON (3/14/13)--A TD Securities report shows that limited access to capital is slowing the overall economic recovery, and this report underscores a longtime credit union argument: that the U.S. Congress must act to remove the low, arbitrary 12.25%-of-assets cap on credit union member business loans.

In a release cited on businessinsider.com, TD Securites said overall credit conditions have been on the mend, but also noted access to credit has been limited for some small business owners.

The proportion of businesses ready to increase their capital spending has held steady at around 20%, below the pre-recession average of 30%, TD Securities reported. This shows credit access has impacted hiring and capital spending decisions, TD Securities noted.

According to U.S. Small Business Administration statistics, small businesses represent 99.7% of all employer firms, employ half of all private sector employees, and pay 44% of total U.S. private payroll.

Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) in mid-February introduced MBL legislation, H.R. 688, which would increase the credit union MBL cap to 27.5% of assets, from the current 12.25%-of-assets level. The bill, if enacted, would help credit unions lend an additional $14.5 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 158,000 new jobs.

The Credit Union National Association continues to strongly support the MBL bill, which has 63 cosponsors.
RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
1 Day ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
11 hours ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
12 hours ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
13 hours ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
13 hours ago