CUs Snub by Administration on Biz Lending Posted by AVCU on 9:39 AM

CUNA’s News Now reported this week that the credit union industry is outraged, baffled and feeling "snubbed" by the Obama administration's proposal to funnel $30 billion into smaller banks for business lending--but do nothing for credit unions. At a town hall meeting in Nashua, NH, President Obama announced a proposal to channel billions to community banks to support small business lending. Specifically, the president's initiative would create a $30 billion Small Business Lending Fund using unspent Troubled Asset Relief Program (TARP) money that would be available as capital investments for community banks as an incentive to increase their small business lending. The proposal is subject to review and legislation by Congress. However, as CUNA President Dan Mica pointed out, the proposal is entirely focused on small and community banks, and includes nothing for credit unions, ignoring the potential contribution that credit unions could make toward national economic recovery.

CUNA and NAFCU have been lobbying for the federal 12.50% of assets cap on business loans to be increased, and for the threshold for loans to be considered business loans instead of business purpose be increased to $250,000. See more on CUNA’s business lending lobbying effort.