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CUs MBL lift backed again in online pub iFrum Forumi
WASHINGTON (11/18/10)—Congress should enact member business lending cap lift legislation “without delay” if that body “wants to show it’s serious about getting the economy moving again,” columnist Eli Lehrer wrote in a recently published Frum Forum online editorial. The Credit Union National Association (CUNA) has estimated that lifting the MBL cap to 27.5% of total assets, as has been proposed, would help small businesses create over 100,000 new jobs. “The bill doesn’t allocate a dime from the federal Treasury and will produce billions of dollars in new loans, mostly to smaller businesses,” Lehrer said. “If implemented, the proposal will provide loans to businesses that wouldn’t otherwise get them, encourage more lending by banks, and offer a market oriented piece of economic stimulus,” he added. “A very large portion of credit union business loans go to businesses that simply wouldn’t get credit anywhere else,” said Lehrer, adding that the level of industry-specific specialization, coupled with default rates that are similar to those seen at banks, shows that credit unions “clearly know what they’re doing when they make these loans.” Extending credit unions’ ability to lend will also keep banks honest by encouraging more bank lending as well, Lehrer said. Lehrer, who has backed the MBL legislation in previous editorials, has said increased member business lending "deserves consideration both on its own and as a template for bipartisan action to get the economy moving." For the full editorial, use the resource link.
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