It’s time to consider increasing credit unions’ member business lending cap, Texas governor and presidential candidate Rick Perry told more than 250 credit union representatives at the Iowa Credit Union Convention Friday.
Doing so would inject $13 billion in loans into the national economy and create up to 140,000 jobs, Perry noted, at no cost to taxpayers.
“You serve small businesses and you need to have that member business lending cap raised,” he said. “That is an arbitrary number that someone said was 12%, and why it’s 12% no one can answer.”
Many Iowa credit unions are at or approaching the federal business lending cap, 12.25% of assets. As a result, these credit unions have to turn away turn away small businesses that can’t get credit from banks.
“Our credit union regularly meets with business owners that are being turned down for loans by banks,” said University of Iowa Community Credit Union CEO Jeff Disterhoft. "Unfortunately, the fact that we are at the federal cap prohibits us from helping them. We need more leading policymakers to do what Governor Perry did today, which is shine a light on a solution that will help create jobs without any taxpayer cost.”
“We were very pleased to hear Governor Perry’s support for raising the member business lending cap,” said Patrick Jury, president/CEO of the Iowa Credit Union League. “This is a common-sense solution that should be advanced by this Congress. Hopefully, the attention provided to the issue by Governor Perry today will aid in growing bipartisan support for the issue.”
Perry also highlighted his longstanding support of Texas credit unions. “Credit unions in my state generate three quarters of a billion dollars in salaries, employ 18,000 workers, and provide billions of dollars in capital for families and businesses. Protecting their tax status was an important part of protecting their important economic investments.”