On February 14, Rep. Ed Royce (R-California) reintroduced the Credit Union Small Business Jobs Creation Act (HR 688), which would liberalize federal rules that currently restrict credit unions from allocating more than 12.25% of their assets to small business borrowers. The legislation would increase that lending cap to 27.5% for credit unions that meet stipulated requirements. The bill already has strong (and growing) cosponsorship, and although support is more bipartisan than it was last year, Democratic cosponsors currently outnumber Republicans by a ratio of about 1 to 4.
FRA has concluded that, together with specialized lenders specifically directing themselves to farmers’ and loggers’ credit needs, credit unions are more likely to understand and weigh a logging business’s credit risk sensitively than the major, unspecialized lenders with weak local representation are and that credit unions deserve the opportunity to serve that market without encumbrances limiting them from competing.
Please contact your member of Congress, and ask him or her to sign on as a co-sponsor of the Credit Union Small Business Jobs Creation Act! Again FRA’s “Write Your Legislator” module is easy to use, and—customized with your own experiences in the small business credit market—your contact with your House Member can have a powerful effect.
More at this link.