Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Lakeview CU slowed by MBL cap
NEENAH, Wis. (10/25/11)--Lakeview CU was spotlighted for its member business lending (MBL) efforts in an Oshkosh Northwestern newspaper article, but the story also noted how the MBL cap hinders the Neenah, Wis.-based credit union's efforts to help more small business members.

"Every time Lakeview Credit Union CEO Pat Lowney authorizes a business loan, he makes money for someone else," the article opens.

It goes on to explain, "For several years, Lakeview has been limited by a federal law that caps credit union business lending to 12.25% of its total assets. So when a Lakeview member requests a business loan, Lowney said he has to find another credit union willing to purchase the majority of the loan from the Neenah-based credit union."

Selling the loan slows the lending process down dramatically, Lowney told the paper.

The article describes the nationwide efforts of credit unions to champion federal legislation that would increase the to 27.5% of total assets to bolster small business lending and job creation.

Raising the cap up to 27.5% would open up $405 million in new lending capability for Wisconsin credit unions, Brett Thompson, Wisconsin Credit Union League CEO told the Northwestern.

Thompson said the decline in commercial lending by banks since the recession has left a gap credit unions can fill.

"There are members of credit unions coming in and asking them to make loans because they're not finding other alternatives available to them in the banking community," Thompson told the paper. "There is a need out there and it's not being met."

The Credit Union National Association (CUNA) and credit unions are urging the U.S. Congress to increase credit unions' MBL cap because doing so would open up more opportunity to offer MBLs, inject $13 billion in loans into the economy and create about 140,000 new jobs, with no cost to taxpayers.
RSS





print
News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
1 day ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief. http://t.co/TMTubG9Afk
1 day ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today: http://t.co/ep5…
1 day ago
Seriously underwater homes rise, new-home sales tumble News Now: http://t.co/2LzWTkqnES
1 day ago
#NewsNow Cornerstone Foundation awards $71K in grants http://t.co/Y6D8K9rwWv
1 day ago