CUNA: Obama urged to back removing biz loan cap

WASHINGTON (12/19/08)--President-elect Barack Obama has been asked by the Credit Union National Association (CUNA) to encourage the U.S. Congress to eliminate the cap on member business lending (MBL) by credit unions.

In a letter to the incoming President, CUNA President/CEO Dan Mica noted that during a Thursday press conference Obama remarked that problems in the U.S. economy will continue "if small and large businesses cannot get access to enough credit."

Mica wrote that if the cap on MBLs on credit unions were lifted, credit unions could lend up to an additional $10 billion to the nation's businesses in the first 12 months of being granted the authority.

"This is an economic stimulus measure that does not cost the taxpayers a dime, and does not increase the size of government," Mica wrote.

The Dec. 18 letter follows a similar one sent by CUNA to members of the House Financial Services Committee. CUNA noted that credit unions are continuing to lend, even in these difficult economic and financial times, helping consumers and the economy.

The letter asked lawmakers to allow credit unions to do even more by removing the MBL cap through economic stimulus legislation.

Use the resource link below to see the complete texts of the CUNA letters.

courtesy of cuna.org