Member Business Lending

Send an e-mail now to:
•  The White House

• Small Business Ad
• ICBA Response
• Joint Senate Press Release
• Thomas Link to H.R. 3380
• Thomas Link to S. 2919
• NCUA Letter of Support
• Facebook MBL page
• Twitter MBL account

Background: Credit unions have been making member business loans (MBLs) since the early 1900s. Throughout most of this period there were no limits on the volume of MBLs credit unions could hold. Statutory limits on credit union member business lending did not appear until passage of the Credit Union Membership Access Act of 1998 which established a cap of 12.25% of a credit union's total assets. There was no economic rationale for this limit in 1998 and there is no rationale now. Today, legislation which would raise this cap to 25% is pending in both the House and Senate - H.R., 3380, the Promoting Lending to America's Small Businesses Act and S. 2919, The Small Businesses Lending Enhancement Act.

Credit Union Member Concerns: Credit unions with important experience in business lending are approaching their capacity to lend to small businesses. At the same time, small businesses are finding it increasingly difficult to obtain credit from other financial institutions. Credit unions need congressional action in order to lift the member business lending cap. Through imminent job creation legislation, Congress has the opportunity to help small businesses and credit unions by lifting the cap. MBL reform could provide up to $10 billion to small businesses in the first year alone and create over 108,000 new jobs. The time is right for credit unions to urge the President, Congress and Treasury to lift the cap.

Action Needed: Please send a message to President Obama, Treasury and both of your Senators TODAY urging them to include S. 2919 or any provision that would lift the MBL cap in the "jobs bill." A prewritten letter is available for your use at the Credit Union Grassroots Action Center, where you can personalize and send an email or print and fax a letter. (This message will be directed to the appropriate Senators based on your address.)

Thank you for your participation in this important Action Alert!

Make sure your voice is counted! If you do not utilize CapWiz, please be sure to send your league representative a copy of your letter.

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