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Washington
Small biz pays price of loan limits on CUs House told
WASHINGTON (11/17/08)--Small businesses pay the price of the limit on credit union business lending, another reason to lift the cap in upcoming economic stimulus legislation, the Credit Union National Association (CUNA) wrote in letters to leaders of the House of Representatives and its Financial Services Committee. The only group that benefits from the credit unions being limited in business loans is banks, CUNA President and CEO Dan Mica wrote in letters to House Speaker Nancy Pelosi (D-Calif.), Majority Leader Steny Hoyer (D-Md.) and Financial Services Committee Chairman Barney Frank (D-Mass.) and Ranking Member Spencer Bachus (R-Ala.). Further, Mica wrote, an additional $10 billion in business loans could be made by credit unions in the first twelve months once the cap is lifted. “Small businesses pay the price of the credit union business lending cap because they have fewer options; and in the credit crunch, some are finding they have no options at all,” Mica wrote. The CUNA president emphasized that “considerable data on credit union member business lending demonstrates this type of lending is sounder than both commercial extended by banks as well as other types of credit union loans.” Mica called it a “myth” that credit unions do not have a history of making business loans. He said that notion is “dispelled by the fact that when Congress capped credit union business lending, credit unions with significant experience doing this type of lending were exempted by the cap.” Use the link below to access the complete text of CUNA’s letters to the House leaders--text of letter to Speaker Pelosi is same as in others.


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