WASHINGTON (10/7/11)--Jeff York, president/CEO of Coasthills FCU, Lompoc, Calif., will testify Oct. 12 on the benefits a higher cap on credit union member business lending (MBL) would have on the nation’s economy and its small businesses. York, a Credit Union National Association (CUNA) board member, will testify on behalf of the CUNA. National Credit Union Administration (NCUA) Chairman Debbie Matz is also among the scheduled witnesses. The hearing, announced last week by the House Financial Services subcommittee on financial institutions and consumer credit, will study pending legislation that would increase the MBL cap to 27.5% of a credit union’s assets, up from the current 12.25%. Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) introduced H.R. 1418, the Small Business Lending Enhancement Act, earlier this year in the House. The bill has 80 co-signers. On the Senate side, Sen. Mark Udall (D-Colo.) has introduced S. 509, the Small Business Lending Enhancement Act, which has 20 co-sponsors. CUNA emphasizes that lifting the MBL cap would have a number of beneficial effects on the ailing economy, including infusing $13 billion in new credit for small businesses and adding 140,000 new jobs within the first year of enactment—all at no cost to the American taxpayer. Also scheduled to testify, according to a subcommittee announcement, are:
* Sal Marranca, president/CEO of Cattaraugus County Bank, on behalf of the Independent Community Bankers of America; * Albert C. Kelly, Jr., president/CEO of SpiritBank and chairman-elect of the American Bankers Association; * Gary Grinnell, president/CEO of Corning CU, on behalf of the National Association of Federal Credit Unions; and * Mike Hanson, president/CEO of the Massachusetts Credit Union Share Insurance Corporation.
The hearing is scheduled for 2 p.m. (ET).