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Colorado CUs to media MBL means for small biz
BOULDER, Colo. (4/4/11)--Colorado's credit unions and the Credit Union Association of Colorado (CUAC) were featured touting small business loans in an article about the bill before Congress to lift the member business lending (MBL) cap in Thursday's Boulder County Business Report. In the article, "Credit unions poised to loan," the association said that raising the lending cap to 27.5% of a credit union's assets from 12.25% would create an estimated 100,000 new jobs across the U.S. The bill was introduced in Congress by Sen. Mark Udall (D-Colo.), who is quoted in the article as saying his bill would "free up capital--without costing taxpayers a dime--so that credit unions can loan to local small businesses that need to make payroll, buy inventory or expand their businesses." Jay Champion, head of business lending and services at Boulder-based Elevations CU, told the publication that the credit union plans to hire two business loan officers in the next 12 months, but if the cap were raised, it probably would hire four employees. Raising the cap also would allow the credit union to make a more substantial impact on the community and businesses, and help credit unions become bigger players in the community, he said, adding the credit union has money to loan. Banks are lobbying against the plan, but raising the cap would free up some money to lend, said CUAC spokesman Tom Dore in the article. Also interviewed were Rick Allen, president/CEO of Boulder Valley CU, and Carlos Pacheco, president of Boulder-based Premier Members FCU, who both said they are looking for ways to lend more money. Some credit unions are close to the MBL cap and may have to stop helping small businesses, even though credit unions can provide a lot of benefit to local small businesses, said Pacheco. The article also cites statistics from the Credit Union National Association (CUNA) about the impact of raising the MBL cap. CUNA recently released updated statistics indicating that raising the cap would create 140,000 new jobs and provide $13 billion in new small-business loans. To access the full article, use the link.
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