Sen. Mark Udall will be introducing the “Small Business Lending Enhancement Act of 2013″ as per Credit Union Trade Association. It will help to raise the lending cap to small business from 12.25% of assets to 27.5% of total assets.
This act recognizes the value of credit unions as a key provider of credit to small businesses and provides a level playing ground to the credit unions. Credit unions have increased their funding to small businesses during the recession. With access to more capital, more number of jobs will get created. So, as small businesses create jobs, it will help to put the economy back on the rails of development.
The ‘Small Business Lending Enhancement Act’ is going to raise the cap of credit unions and allow them to offer larger number of small business loans. The legislation would extend the raised cap of credit unions from its current cap during the last four consecutive quarters.
This legislation will spur credit unions to keep lending to business owners as it did during recession. Credit Unions can lend out capital, maintain a history of prudent and safe lending, and work with a mission to provide capital to small business owners. What credit unions just require now is Congress should enact Sen Udall’s bipartisan legislation and also give way to similar legislations that are still pending like the ones introduced by Reps. Ed Royce and Carolyn McCarthy.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to