CUNA keeps up drive: CUs can help country's credit, job woes

WASHINGTON (1/29/10)—The Obama administration should not overlook credit unions as part of the solution to the country's credit and job woes, Credit Union National Association President/CEO Dan Mica reiterated after the president's State of the Union Address Wednesday night.

CUNA had called on President Barack Obama to endorse credit union member business lending (MBL) as part of the solution to the small business credit crunch in his State of the Union address. Legislation that would lift the MBL cap is pending in both the House and the Senate, and CUNA estimates lifting the cap could result in as much as $10 billion in new capital for small businesses and the creation of over 108,000 new jobs within one year.

After hearing Obama's remarks, which did not include credit unions, Mica said, "We are disappointed that the administration is going to give banks $30 billion in taxpayer money in the hope that they do the right thing and lend it to small businesses, while keeping the credit union no-cost-to-the-taxpayers solution on hold." The $30 billion is a reference to Obama's proposal to channel that amount in TARP funds to community banks to encourage them to lend.

"Remember, banks are the ones who are telling Congress -- as recently as two weeks ago -- that demand for small business loans is down. Credit unions know there is demand for small business loans and they are ready to lend," Mica said.

"Mr. President,credit unions are willing and able. Tell Congress to lift that cap and let credit unions help small businesses."

CUNA will continue to press the MBL issue with key U.S. Treasury Department officials and in the U.S. Congress.

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