Reps. Brad Sherman (D-Calif.) and Gwen Moore (D-Wis.) joined last week a growing chorus of voices calling for an expansion of credit unions’ member business lending authority.
During a hearing of the House Subcommittee on Capital Markets and Government Sponsored Enterprises, Sherman said increasing credit unions’ MBL cap would help to boost the amount of capital available to small businesses.
Sherman pointed to a recent letter from the National Association of Federal Credit Unions in which Carrie Hunt, NAFCU’s senior vice president of government affairs and general counsel, urged lawmakers to expand the MBL authority.
“The credit union member business lending cap is denying our nation’s small businesses all the tools they need to grow and spur economic activity such as job creation,” Hunt said in the letter.
Hunt urged support for legislation introduced by Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) to increase credit union lending to small businesses. She also urged support for a bill introduced by Rep. Peter King (R-N.Y.) and Sherman that would allow the National Credit Union Administration to authorize credit unions to accept supplemental capital that does not alter their cooperative nature.
“Credit unions and their 96 million members urge your additional consideration of legislation that would reduce impediments to capital for our nation’s small businesses by allowing credit unions to better assist in lending efforts,” Hunt said.