WASHINGTON (7/11/11)--The Senate should be permitted to consider legislation to raise the cap on credit union business lending -- which would help create needed jobs in a fragile economy -- Credit Union National Association (CUNA) President/CEO Bill Cheney stated in a letter to Senate leaders. The Obama administration on Friday reported that overall payroll employment increased by 18,000 in June. The nationwide unemployment rate increased to 9.2% during the month. In the wake of this lackluster jobs report, Cheney told Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.), that America’s credit unions stand “very willing” to help businesses create jobs and hold significant capital that could be loaned to small businesses -- but for a statutory cap restricting credit union business lending. Lifting the credit union member business cap to 27.5% of total assets, as proposed in Sen. Mark Udall's (D-Colo.) S. 509, would inject an estimated $13 billion in funds into the economy, creating over 140,000 new jobs. Sen. Olympia Snowe (R-Maine) is the other original sponsor of the bill. Cheney added that the MBL cap lift legislation “has been endorsed by the Obama administration, has been subject to hearings in the Senate Banking Committee, and is the type of commonsense legislation that Senators on both sides of the aisle should be able to embrace: new jobs, new lending to small business, zero cost.” Bank opposition to the MBL cap lift, and their own lack of business lending activity in the wake of considerable government assistance, are unacceptable, Cheney added. Failing to enact S. 509 “literally leaves money on the table that could help small businesses hire those among the 9.2% of Americans actively seeking jobs,” Cheney said. “The time is now to set aside the banker objections, move the Udall-Snowe bill and let credit unions serve their members who own small businesses,” he added. For the full letter, use the resource link.