Removing Barriers Blog

Senate Banking Committee Holds Hearing on Improving Access to Capital
Posted May 19, 2016 by CUNA Advocacy

Today the Senate Banking Subcommittee on Securities, Insurance and Investment held a hearing entitled “Improving Community and Business Access to Capital and Economic Development.” While the hearing was focused on commercial real estate and business development companies, we followed closely as it remains our view that one of the best ways to spur access to capital for businesses and economic development is to allow credit unions to expand small business lending in the communities they serve.

As Senator Toomey noted, there has been a decline in the number of small businesses in this country in the last several years, and one reason has been a lack of access to traditional financing through banks. Meanwhile, credit unions in many communities stand ready and willing to extend small business credit, but are constrained by an artificial cap on commercial lending. That's why we continue to promote H.R. 1188 in the House, and S. 2028 in the Senate, that would raise the statutory MBL cap to 27.5% of total assets.