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Udall announces MBL cap lift legislation at GAC
WASHINGTON (3/3/11)--Addressing a Credit Union National Association (CUNA) 2011 Governmental Affairs Conference audience, Sen. Mark Udall announced the release of a bipartisan letter stating his
Click to view larger image Sen. Mark Udall (left), who introduced legislation in the Senate during the last session of the U.S. Congress that would have raised the member business lending cap to 27.5% of assets, said that credit unions can push MBL legislation through in 2011. (Shown here with Udall are: Michele Johnson (center), CUNA director of federal legislative affairs, and Ryan Donovan (right), CUNA vice president of legislative affairs. Also at the GAC, Rep. Ed Royce (R-Calif.) said he would re-introduce an MBL bill on the House side soon. (CUNA Photo)
intention to introduce legislation that would increase credit union member business lending (MBL) authority in 2011. The letter, co-signed by Udall (D-Colo.), Sen. Olympia Snowe (R-Maine) and Sen. Charles Schumer (D-N.Y.), describes the Small Business Lending Enhancement Act, which would allow credit unions to increase their small business lending to 27.5% of assets from the current limit of 12.25%. The bills states that to go above 12.25% for MBLs, a credit union must be well capitalized and have a history of MBL experience, be near the lower cap for one year prior to exceeding it, and receive approval by the National Credit Union Administration to lend in excess of the old cap. After a higher limit is approved, if the credit union’s net worth drops below 7%, its must halt further member business lending. At the GAC and in the letter, Udall restated CUNA's position that the MBL limit increase would inject an expected $10 billion into the U.S. economy and create an estimated 100,000 jobs. "We've worked this out," he said. "It makes sense. We ought to put it into law. We came very close last year."


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