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

Washington
Report Says Small Biz Unmet Capital Needs Harm Economy
WASHINGTON (3/14/13)--A TD Securities report shows that limited access to capital is slowing the overall economic recovery, and this report underscores a longtime credit union argument: that the U.S. Congress must act to remove the low, arbitrary 12.25%-of-assets cap on credit union member business loans.

In a release cited on businessinsider.com, TD Securites said overall credit conditions have been on the mend, but also noted access to credit has been limited for some small business owners.

The proportion of businesses ready to increase their capital spending has held steady at around 20%, below the pre-recession average of 30%, TD Securities reported. This shows credit access has impacted hiring and capital spending decisions, TD Securities noted.

According to U.S. Small Business Administration statistics, small businesses represent 99.7% of all employer firms, employ half of all private sector employees, and pay 44% of total U.S. private payroll.

Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) in mid-February introduced MBL legislation, H.R. 688, which would increase the credit union MBL cap to 27.5% of assets, from the current 12.25%-of-assets level. The bill, if enacted, would help credit unions lend an additional $14.5 billion to small businesses in just the first year after enactment. This money, which would be made available at no expense to taxpayers, would in turn help small businesses create around 158,000 new jobs.

The Credit Union National Association continues to strongly support the MBL bill, which has 63 cosponsors.
RSS





print
News Now LiveWire
Cornerstone CU Union Foundation says it's prepared to assist #CUs & their employees affected by severe storms in Arkansas and Oklahoma.
9 hours ago
In 2014,use of remote deposit capture experienced 13% increase to 51%. But checking a balance continued to B the most common mobile activity
9 hours ago
'Fixing Your Finances' part of @PCUA's #iBelong campaign http://t.co/7j6HO1njog @fox43 @Bellco_CU @Members1stFCU
12 hours ago
Home prices outpacing income growth in 3/4 of U.S. markets @RealtyTrac http://t.co/BQR1w4k822
14 hours ago
Refinance #MarchMadness: Refis drive up mid-March mortgage apps: MBA http://t.co/rTUnlJB516
18 hours ago