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Udall touts MBL bill in blog post
WASHINGTON (3/30/11)--Sen. Mark Udall (D-Colo.) continues to promote his recently introduced member business lending legislation, this time turning to his own blog to answer Facebook users questions about lifting the MBL cap for credit unions.
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S. 509, The Small Business Lending Enhancement Act of 2011, would increase the MBL cap to 27.5% of a credit union's assets, up from the current 12.25%. The Credit Union National Association (CUNA) has estimated that the MBL cap lift could provide up to $13 billion to small businesses in the first year alone and create over 140,000 new jobs, at no cost to taxpayers. Udall in his blog post added that he would continue to fight for his common-sense and bipartisan legislation. In his blog post, Udall noted that the biggest opponent of his legislation, large banks, want the small-business lending market all to themselves, and dont want the extra credit union competition that the legislation would create. Udall also explained the history of the credit union MBL cap to an inquisitive Facebook user. He noted that credit unions had made business loans to their members as a standard practice until the late 1990s, when the current 12.25% of assets cap was slipped in to the Credit Union Membership Access Act. There was no safety and soundness basis for limiting credit unions' ability to offer loans to their business-owning members at that time, he said. Udall also tried to allay another Facebook users fear that legislators could be recklessly increasing risk by promoting increased business lending. The senator noted that his bill includes statutory criteria that ensures only prudent, experienced, well-managed, and well-capitalized credit unions can apply to increase their small-business lending portfolios beyond the current cap. If a credit union meets these specific criteria, the NCUA has the discretion to approve or deny a credit union's application to raise its business lending cap, Udall added. For the full blog post, use the resource link.
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