Removing Barriers Blog

National Small Business Week Presents Many Opportunities for Credit Union Advocacy
Posted May 11, 2016 by CUNA Advocacy

In honor of National Small Business Week, the House Small Business Committee held a hearing to recognize entrepreneurs and to reiterate the importance of small businesses to our nation's economy, and we sent a letter in support of this hearing.  Several pieces of legislation currently pending in the House would benefit both credit unions and the small business community. 

Credit unions are active in supporting their communities by making small business loans, yet they must operate under an arbitrary cap on the amount of business lending they can provide.  H.R. 1188, sponsored by Representative Ed Royce (R-Calif.) would raise the cap to 27.5% of credit union assets, allowing credit unions to provide more access to capital for small businesses.   

Small businesses and credit unions could both also benefit from legislation curtailing the Department of Labor’s proposed overtime rule.  We support H.R. 4773, sponsored by Tim Walberg (R-Mich.) and John Kline (R-Minn.) that would nullify the proposed rule and require DOL to first conduct comprehensive economic analysis on mandatory overtime expansion to small businesses, non-profit organizations, and public employers.  The DOL rule as currently proposed would have unintended negative consequences for credit unions and other small businesses.   

In addition to legislative changes, regulatory reform would also benefit credit unions and small businesses.  In 2014, the financial impact of regulation cost credit union members $7.2 billion.  Regulations need to be tailored to prevent predatory lending and other abusive practices while avoiding unnecessarily burdening small businesses and credit unions. 

We are continually seeking opportunities on Capitol Hill for credit unions to maximize their opportunities to promote thrift and provide access to credit for their members and communities.