Community Bankers Association of Illinois

CBAI ACTION ALERT: Oppose Credit Union Efforts to Increase the Cap on Business Lending
October 11, 2011

On Wednesday, October 12th, a House Financial Services subcommittee hearing will be held on the Small Business Lending Enhancement Act of 2011 (H.R. 1418). This legislation would allow credit unions to expand their business lending by 1) raising the cap on “member business loans” that a credit union can make from 12.25% to 27.5% of assets; 2) increasing the size of loans exempt from the cap; 3) excluding any loan made in an “underserved area;” and 4) repealing certain lending restrictions on undercapitalized credit unions, thereby raising new safety and soundness concerns.

CBAI has consistently held the position that credit unions should demonstrate they are meeting the basic statutory mission that Congress spelled out for them before attempting to expand their powers into more complex and specialized fields while receiving a tax subsidy. Moreover this legislation would only help a handful of the nation’s largest credit unions to the detriment of tax-paying community banks.

H.R. 1418 currently has 86 bipartisan cosponsors. Eighteen members of the Illinois Congressional delegation have not co-sponsored legislation in the House and Senate. The three that have co-sponsored this legislation are Congressmen Dan Lipinski (D-03), Congressman Bobby Rush (D-01), and Congresswoman Jan Schakowsky (D-09). Your response to this Action Alert will continue to make your position known to your House members and discourage others from co-sponsoring this harmful legislation.

Please click here to respond to this Action Alert and register your opposition to H.R. 1418.

Thank you!
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