GREENSBORO, N.C. (5/10/10)--John Radebaugh, president/CEO North Carolina Credit Union League, voiced support for raising the cap on credit union member business loans in a Wednesday letter to the editor of the Greensboro News-Record
The letter cites the need for increased credit to small businesses and the limits of the current 12.25% member business lending cap (Weekly Update
May 7). Radebaugh touted the major benefits of raising the cap, including increased capital to small businesses, job creation and the fact that raising the cap would not cost taxpayers. “Credit unions are seeing a noticeable increase in the demand for small-business credit,” Radebaugh wrote. “Yet some are unable to satisfy this demand, not because they are unwilling to lend, but due to the limits of this arbitrary cap.” He also called attention to North Carolina’s unemployment rate and the impact of raising the cap on joblessness. “If Congress raises the cap on small-business loans, more than 108,000 jobs would be created nationwide in the first year,” Radebaugh wrote, citing projections from the Credit Union National Association. “With more than 500,000 North Carolinians looking for work, I encourage Congress to raise the cap on lending to small businesses. Credit unions stand ready to help businesses create jobs.” Bills in both houses of Congress (H.R. 3380 and S.2919) would raise the business lending cap to 25% of assets. To read the letter, use the link.