WASHINGTON -- Small business owners, accompanied by small business trade group and think-tank representatives, will fan out across Capitol Hill next week in support of expanded authority for credit unions to make business loans to their members.

The visits, Feb. 7-8, are being coordinated and assisted by CUNA and selected state credit union leagues across the nation. About 75 small business representatives from 15 states are expected to visit their lawmakers next Tuesday and Wednesday.

The effort by the business owners and representatives comes at a time when Congress is searching for effective ways to help the economy add jobs and inject capital to small business.

The Senate bill, S. 509 (the Small Business Lending Enhancement Act of 2011 ) and the House bill H.R. 1418, (the Small Business Lending Enhancement Act) would raise the credit union business lending cap from 12.25% of total assets to 27.5% of total assets.

According to CUNA, doing so would permit credit unions to lend an additional $13 billion to small businesses in the first year after enactment, and help small business create 140,000 new jobs at no cost to taxpayers.

One aim of the business owners visiting Capitol Hill is to show the link between small business needs for credit and credit unions’ desire to help fill that need. For example: Results of a recent survey of small business owners (by a coalition of groups representing small businesses) showed that nearly two-thirds (64 percent) of the owners said availability of credit is a “serious/fairly serious” problem. Further, 90 percent of the business owners said support (strongly or somewhat so) making it easier for credit unions and community banks to give loans to small business.

CUNA has worked in support of the business owners, and credit unions, by sharing information with lawmakers about the challenges facing small business, and how credit unions can help meet those challenges:

• Last week, CUNA shared with all congressional offices a blog posting from The Hill newspaper by the American Consumer Institute (“How to Create Jobs, Spur Innovation”), which cited credit union business lending as a method for accomplishing both (click here to see more);
• Also last week, CUNA shared with lawmakers a white paper prepared by the Progressive Policy Institute, which discussed easing the credit squeeze on small business and drew a direct line to credit unions as a method for doing so (click here to see more).
• CUNA shared this week with all congressional offices the results of the survey of small business owners (conducted by the Small Business Majority, Main Street Alliance and the American Sustainable Business Council), which (in addition to the results mentioned above), revealed that most small business owners (three in five) say it is much/somewhat harder to get a loan –and three-quarters of larger employers (those with 10 or with 10 or more employees) say it is harder to get a loan. (Click here to see the press release.)
• Today on the Huffington Post, Eli Lehrer of the Heartland Institute posted a comment in support of the credit union business lending legislation, noting that Republicans (like him) “need to look for more creative ways to fight burdensome government regulations. They can -- and should -- start by looking at credit union lending.” (Click here to see the post.)

Additionally, CUNA is sponsoring ads in support of small business and credit union business lending in Capitol Hill-focused media, including “The Daily Caller” website and newspapers (The Hill, Roll Call, Politico, etc.; click here to view the ad).

“We want to foster an environment in which lawmakers hear and see more about this key issue for small business owners and credit unions,” said CUNA President and CEO Bill Cheney. “We are hopeful that a vote to allow credit unions to help small businesses will occur soon – and that lawmakers will be armed with all of the facts when the votes come due.”