Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) today introduced the Small Business Lending Enhancement Act, which will provide much needed financing for small businesses without spending a single tax dollar.
“As the U.S. continues to grapple with both record deficits and high unemployment, Congress must look at proposals that will spur economic growth without saddling the U.S. taxpayers with more debt,” said Royce.
“Small businesses drive the economy in my district on Long Island and in communities all over America. I’m proud to reach across the aisle—and across the country—to help our small businesses and entrepreneurs grow at this critical time,” said McCarthy.
The Small Business Lending Enhancement Act would raise the current credit union member business lending cap from 12.25% to 27.5%. To qualify for the higher cap, a credit union must be well-capitalized, have a history of member business lending experience, be operating near the lower cap for at least one year, and receive NCUA approval.
“With a projected $1.6 trillion budget deficit, stimulus spending is not an option,” said Royce. “This legislation takes an important step in shifting our current economic path and putting Americans back to work. As a result of the Small Business Lending Enhancement Act, credit unions will be eligible to lend up to $10 billion to small businesses within a year, which translates into more than 100,000 new jobs.”
“We appreciate the leadership that these members of the House have shown,” says CUNA President/CEO Bill Cheney. “This is common-sense legislation that can help credit unions add jobs and inject more money into the economy, at no cost to taxpayers and without expanding government.
“The introduction of this legislation is an important step to restarting the conversation with the House of Representatives about how credit unions can help small business recover from the financial crisis.”