There are a number of issues that lobbyists and industry officials will introduce in Capitol Hill. The financial services committee of the House will hold a hearing on a legislation to raise the cap on member business loans. This is to be followed by a Senate Banking Committee hearing that has already been held last month where the legislation has been endorsed.
Credit unions made use of the recess to support their lobbying on the issue. CEO Jeff Disterhoft, of University of Iowa Community Credit Union did the highest level of lobbying as he requested President Obama to support the legislation.
Disterhoft said that his credit union has assets of $1.4 billion and it has been doing business lending for 20 years now. The meeting took place at Northeast Iowa Community College where Karen Mills, Small Business Administration Administrator was also present. Credit union executives demanded for a raise of cap. Credit union loans play a dominant role for the survival of city’s commercial downtown.
Sen. Mark Udall (D-Col.) and Rep. Ed Royce (R-Calif.) have introduced legislation, in order, to enable eligible credit unions to enhance small business lending to 27.5%. However, the rate of growth is not to exceed 30% in a year. Udall’s bill encompasses 20 co-sponsors in 100-member senate and Royce’s bill has 62 co-sponsors in the 435-member House.
Credit unions should be well-capitalized and it should be above 80% of the current cap. They should also have five or more years of member business lending experience and should be in a position to demonstrate sound underwriting service.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org