Recent Hill battle brings great MBL recognition: CUNA

WASHINGTON (7/30/10)--The recent Capitol Hill battle that embroiled a small business jobs package has taken its toll on that legislation, but credit unions have been able to use the process to shine a positive light on increased member business lending, said Credit Union National Association (CUNA) Senior Vice President of Legislative Affairs John Magill Thursday.

CUNA and credit unions worked fervently to add a provision to the small business bill that would increase credit union business lending authority to 27.5% of total assets, up from the current 12.25% cap. Sen. Mark Udall (D-Colo.) crafted an amendment proposing that increase and has urged his colleagues in the Senate to add it to the body of the bill.

During the process, CUNA and credit unions have been able to make the case for increased MBL authority to lawmakers and in the media. The effort, in fact, gained the backing of the Obama administration.

"This is the closest credit unions have ever gotten in their pursuit for increased MBL authority. Lawmakers, and the nation at large, have learned how much this simple legislative change could do to help our nation and its small businesses," Magill said late Thursday.

As Udall has noted on the Senate floor, CUNA estimates that more than $10 billion in credit could become available if the MBL cap were lifted, even if just to 25%. The statutory change would also serve to add 108,000 jobs into a struggling market.

"The overall bill may be a victim of politics. But credit unions have received attention and recognition on Capitol Hill, and we'll be back at the first opportunity to finish the job," Magill said.

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