Bills Increasing Credit Union Lending Introduced

Jan 5, 2010

Legislation has been introduced in both the U.S. House of Representatives and Senate that would increase credit union member business lending from 12.25 percent to 25 percent of a credit union’s total assets. The bills also would increase—from $50,000 to $250,000—the maximum total loan extension necessary before an extension of credit would be considered a member business loan.

Small Business Lending Enhancement Act of 2009 (S. 2919)

Senator Mark Udall (D-Colo.) recently introduced legislation that would increase the cap on credit union business lending from 12.25 percent of a credit union’s assets to 25 percent of total assets. The legislation also would change the definition of a credit union member business loan to exclude loans of less than $250,000.

The Credit Union National Association estimates that these reforms will increase small-business lending by $10 billion within the first year of their enactment, producing more than 100,000 new jobs.

NSBA supports the legislation, believing any step that can improve the availability of credit for America’s small-business owners is welcome during this period. The legislation also has been endorsed by a diverse range of other business associations.  

The Small Business Lending Enhancement Act of 2009 (S. 2919) is cosponsored by Sens. Barbara Boxer (D-Ca.), Susan Collins (R-Maine), Kirsten Gillibrand (D-N.Y.), Joseph Lieberman (I-Conn.), Charles Schumer (D-N.Y.), and Olympia Snowe (R-Maine), the ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship. It has been referred to the U.S. Senate Committee on Banking, Housing, and Urban Affairs.

Promoting Lending to America’s Small Businesses Act (H.R. 3380)

 Reps. Paul Kanjorski (D-Penn.) and Ed Royce (R-Calif.) previously introduced the House version of this legislation, which currently has more than 45 cosponsors.

The Promoting Lending to America’s Small Businesses Act (H.R. 3380) also would increase credit union member business lending from 12.25 percent to 25 percent of a credit union’s total assets. H.R. 3380 also would increase—from $50,000 to $250,000—the maximum total loan extension necessary before an extension of credit would be considered a member business loan. 

 H.R. 3380 has been referred to the U.S. House Committee on Financial Services.

NSBA applauds the introduction of S. 2919 and H.R. 3380, thanks the bills’ sponsors for their leadership on the issue, and urges Congress to quickly adopt the measures.