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NAFCU President Fred Becker has taken to the pages ofThe Washington Post to urge President Obama to support an increase in credit unions' member business lending cap as part of any proposed plan to jump-start job creation.

In a Sept. 4 op-ed in the newspaper's Capital Business publication, Becker reiterated the benefits of S. 509 in the Senate and H.R. 1418 in the House (both titled The Small Business Lending Enhancement Act of 2011). The identical bills would raise the credit union member business lending cap from the current, arbitrary limit of 12.25 percent of total assets to 27.5 percent.

NAFCU believes the legislation, which would help small businesses and foster job creation, meets President Obama's criteria of being a "bipartisan, common sense step that can make a difference in creating jobs," Becker wrote.

He noted that credit unions are already actively lending to small businesses and could do even more if the cap were lifted. "Moreover, unlike other programs, raising the credit unions' member business lending cap does not require additional funding and therefore makes it a uniquely sensible solution," he said.

Becker also pointed out that the legislation was developed by Treasury, NCUA and lawmakers to specifically address safety and soundness concerns. For example, a credit union would not be allowed to grow its member business loan portfolio more than 30 percent annually. It would also have to have five consecutive years of experience in underwriting and servicing member business loans before being eligible to exceed the 12.25 percent cap.

Raising the cap, as outlined in the legislation, "is a common-sense and cost-effective way to ensure that creditworthy small businesses have the capital they need to help spur job creation," Becker wrote. He added that passing the bill "would be a win-win for small business, taxpayers and our economy and would help us put America back to work."

President Obama is slated to deliver a major address on job creation before a joint session of Congress tomorrow evening.