WASHINGTON (9/10/15, UPDATED 5:55 p.m. ET)--Sens. Rand Paul (R-Ken.), Sheldon Whitehouse (D-R.I.) and Jack Reed, both Democrats from Rhode Island, introduced a credit union member business lending bill this afternoon to increase the statutory cap to 27.5% of a credit union's assets.
Under the Small Business Lending Enhancement Act of 2015, a credit union would need to be in good standing, and have a history of making business loans, to qualify for the cap increase. It also would require approval from the National Credit Union Administration.
“This bill would help spur the nation’s economy by allowing small businesses greater access to credit union capital. I thank Sen. Paul for his leadership and commitment to introducing legislation that will help credit unions and small businesses create new jobs across the country," said CUNA President/CEO Jim Nussle, welcoming the bill.
A similar bill is pending action in the House. Reps. Ed Royce (R-Calif.) and Gregory Meeks (D-N.Y.) have introduced the Credit Union Small Business Jobs Creation Act (H.R. 1188).
CUNA estimates have shown that the MBL cap change would help credit unions lend an additional $13 billion to small businesses in just the first year after enactment. This money, which would be made available at no expense to taxpayers, would in turn help small businesses create around 140,000 new jobs.