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Removing Barriers Blog

Senators Introduce Legislation to Raise MBL Cap
Posted September 11, 2015 by CUNA Advocacy

CUNA-backed legislation was introduced yesterday by Sens. Rand Paul (R- Ky.), Sheldon Whitehouse (D-R.I.) and Jack Reed (D-R.I.) to raise the current cap on credit union member business lending. Our estimates suggest that this bill could help create 152,200 jobs within the first year of enactment. 

Credit unions are currently limited to lending no more than 12.25 percent of their assets to commercial loans. S. 2028, The Small Business Lending Enhancement Act of 2015, would increase the lending cap up to 27.5 percent of assets. Today, small businesses create seven of every ten new jobs and employ over half of the country’s private sector workforce. CUNA economists estimate that doubling the lending cap would generate a first-year increase in capital of $16 billion and create over 152,000 new jobs.

The bill has support from a broad variety of public affairs and trade associations, including the Competitive Enterprise Institute, R Street, Americans For Tax Reform, American Consumer Institute, The Realtor's, and the Progressive Policy Institute. CUNA is working in partnership with the Leagues to encourage Senate members to cosponsor the bill. Reps. Ed Royce (R-Calif.) and Greg Meeks (D-N.Y.) introduced similar bipartisan legislation in the House of Representatives earlier this year. The text of the Senate bill is available here.