FOR IMMEDIATE RELEASE
Contact: Vicki Christner – CUNA Communications; 202-508-6754; firstname.lastname@example.org
Washington, D.C. (September 10, 2015) – CUNA-backed legislation was introduced today 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. The Credit Union National Association (CUNA) estimates the bill would help create 152,200 jobs within the first year of enactment.
“The Small Business Lending Enhancement Act of 2015 would help spur the nation’s economy by allowing small businesses greater access to credit union capital,” said Jim Nussle, president/CEO of CUNA. “I thank Sens. Paul, Whitehouse and Reed for their leadership and commitment to introducing legislation that will help credit unions and small businesses create new jobs across the country.”
Credit unions are currently limited to lending no more than 12.25 percent of their assets to commercial loans. The Small Business Lending Enhancement Act of 2015 would increase the lending cap 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 $14 billion and create over 152,000 new jobs.
CUNA is working in partnership with state-level credit union trade associations (known as Leagues) to encourage Senate members to cosponsor the bill. Reps. Ed Royce (R-Calif.) and Greg Meeks (D-N.Y.) introduced similar bipartisan legislation earlier this year.