An increased source of small business funding to come?
Monday, 02 April 2012 08:14
A senate vote could come this week for The Small Business Lending Enhancement Act of 2011 (S.509 & H.R.1418). The proposed bill, an amendment to the Federal Credit Union Act, would increase the member business lending cap from 12.25% to 27.5% of member assets. The Credit Union National Association (CUNA) reports the cap increase would inject an estimated $3 billion of additional funds into the economy in its first year, in addition to the creation of 140,000 new jobs. Credit unions would have the ability to compete more successfully with banks for small business commercial loans.
According to Mark Hanson’s testimony to the Subcommittee on Financial Institutions and Consumer Credit before the US House of Representatives, the bill will “allow the redeployment of existing credit union capital to member business lending, thereby increasing the amount of available lending to this important economic segment.”
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