As we discussed at the Governmental Affairs Conference last week, a large priority for both America’s Credit Unions and many in Congress this year is to increase the small business lending cap for credit unions. Not even a week out from GAC, a new bill has been introduced to the House which aims to do just that.
The Increasing Credit Union Lending for Business Growth Act (H.R. 1791) would double the amount credit unions are legally allowed to lend businesses, from $50,000 to $100,000. It would also update the Credit Union Member Business Loan authority under current federal law to keep pace with inflation. The bill was introduced with bipartisan support by Representative Vicente Gonzalez (T-D) and Representative Brian Fitzpatrick (PA-R).
“As a small business owner, I understand firsthand the importance of cash flow in keeping operations running, employees paid, and customers satisfied,” said Gonzalez. “This bipartisan bill not only supports our local entrepreneurs, but our local economies as well. Credit Unions play a vital role in supporting our communities, and this bill allows them to better serve the small businesses who create jobs and drive growth in their towns.”
“Small businesses and entrepreneurs are the backbone of America’s economy, from my home district of PA-1 to communities across the country. This bipartisan, commonsense bill strengthens the ability of credit unions to fuel local economic growth through expanded lending and development opportunities,” said Fitzpatrick. “The Increasing Credit Union Lending for Business Growth Act ensures community credit unions have the flexibility they need to provide small business with the capital and financial support required to thrive in today’s competitive market.”
America’s Credit Unions praised the bill and thanked the Representatives for not only introducing it, but for supporting credit unions as critical financial partners for small businesses.
“Credit unions play an important role in helping small businesses thrive, as many rely on their local credit unions for safe, secure, and reliable loans. Outdated business loan restrictions limit the credit unions’ ability to empower small business growth that revitalizes communities,” said Carrie Hunt, America’s Credit Unions’ Chief Advocacy Officer.
The bill has been referred to the House Committee on Financial Services and is still in the very early stages. Therefore, it will most likely be a while before any significant progress is made.
