Newsroom

June 19, 2013 – NAFCU on Tuesday marked the 50th anniversary of National Small Business Week, June 17-21, sponsored by the Small Business Administration, by calling anew for passage of legislation to increase credit unions' member business loan limit.

"Small businesses are the engines that drive our economy, and our nation's financial well-being is integrally tied to their success," said NAFCU President and CEO Fred Becker. "Credit unions are a key source of credit to entrepreneurs and businesses on Main Street in helping America's economy thrive."

Business lending from federally insured credit unions rose 1.4 percent for the first quarter of 2013 and has increased 6.2 percent since March 2012. The average credit union member business loan was $206,000 in March.

"Credit unions know their members well and are able to work with them to provide the most appropriate business loan for their unique situation," said Becker. "However, credit unions are constrained in their efforts by an outdated cap on the amount of business loans they can provide."

H.R. 688, introduced by Reps. Ed Royce, R-Calif., and Carolyn McCarthy, D-N.Y., and S. 968, introduced by Sen. Mark Udall, D-Colo., and a bipartisan group of cosponsors, would lift the arbitrary member business lending cap from 12.25 to 27.5 percent of total assets, accomplishing a key objective of NAFCU's five-point plan for credit union regulatory relief.

Credit unions are urged to contact their lawmakers in support of the MBL legislation; begin by visiting NAFCU's grassroots action center.