CUs post solid MBL growth
Aug. 21, 2013 – Credit union member business lending increased 34 percent since 2008 while commercial bank lending decreased 10 percent during the same time period.
“This is just further proof that credit unions continue to loan while banks don’t,” said NAFCU Regulatory Affairs Counsel PJ Hoffman. “Credit unions continue to serve their members and aid small business growth, which has only positive implications for a recovering economy.”
A 2011 study commissioned by the Small Business Administration’s Office of Advocacy found that credit unions have the ability to offset declines in bank business lending during a recession. The study also noted that bank lending was largely unaffected by changes in the credit unions’ business lending.
NAFCU has a strong history of supporting credit union member business lending and has testified before the Senate Banking and House Financial Services committees on the importance of this issue.
NAFCU-backed legislation, H.R. 688, “The Credit Union Small Business Jobs Creation Act,” would increase the member business lending cap to a maximum 27.5 percent of assets for eligible institutions. This bill, introduced by Reps. Ed Royce, R-Calif., and Carolyn McCarthy, D-N.Y., is a key part of NAFCU’s five-point plan for credit union regulatory relief. Complementary legislation, also supported by NAFCU, is S. 968, the “Small Business Lending Enhancement Act of 2013,” introduced in the Senate by Sens. Mark Udall, D-Colo., Susan Collins, R-Maine, and Rand Paul, R-Ky.
NAFCU's Five-Point Plan for Regulatory Relief
Small Business Administration’s Office of Advocacy 2011 study
NAFCU MBL issue page