Credit unions can bring billions of dollars into the economy with no cost to the government, CUNA Chief Advocacy Officer Ryan Donovan wrote to all 535 Congressional offices Monday. Donovan highlighted how Congressional changes to the credit union member business lending cap of 12.25% of assets can help America’s communities as they recover from the pandemic.
“You can have a direct impact on rebuilding America’s communities by temporarily removing the statutory business lending cap on credit unions,” Donovan wrote. “Taking action now will free up $5 billion to lend to small businesses [and] create 50,000 jobs to support local employers.”
Donovan linked to a CUNA advocacy document outlining how credit unions are positioned to deploy capital to small businesses and entrepreneurs around the country.
House and Senate bills that would exempt COVID-19 related emergency loans from the cap for one year have been introduced. NCUA Chairman Rodney Hood has also called for the cap to be temporarily raised to 20% of assets in communications with the Senate Banking Committee.