Kurt Schrader (D-Ore.) and Steve Chabot (R-Ohio) introduced bipartisan legislation, and so it became possible to introduce in Congress the Credit Union Small Business Lending Act (H.R. 4191).
It is because of this program that it is easier for small businesses to participate in the SBA Small Business Loan Programs. SBA lending plays a crucial role to help in small business growth.
SBA loans are instrumental in generating new jobs for US citizens. Now, with the passing of this legislation, it will become possible for credit unions to make more loans to small companies.
For the growth of small businesses, SBA lending is critical and this new legislation makes way for credit unions to make SBA loans. So, as the credit unions make more loans, it shall become possible to spur on economic growth.
There is another legislation introduced in Congress, the H.R. 1418. It raises the lending cap of credit unions. The cap is raised from 12.25% of assets to 27.5%. It empowers credit unions to make more loans to small businesses in this crucial time when most of big banks escape making grants to SMEs.
When credit unions are allowed to do more to help small businesses, it shall definitely help US to recover from the economic downturn. The Congress should pass both the job creating bill – the H.R. 4191 and H.R. 1418, so as to enable credit unions make more loans to small businesses.
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 email@example.com.