Hunt presses MBL, supplemental capital
Oct. 23, 2013 – Carrie Hunt, NAFCU’s senior vice president of government affairs and general counsel, last night urged leaders of a House subcommittee hearing slated today on small businesses’ capital needs to support increased member business lending authority and access to supplemental capital for credit unions.
The House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises will hear from witnesses today in a hearing on “legislation to further reduce impediments to capital formation.” Hunt, writing panel Chairman Scott Garrett, R-N.J., and Ranking Member Carolyn Maloney, D-N.Y., urged greater MBL authority and access to supplemental capital so credit unions can do more to help meet small businesses’ needs for capital, which was scarce during the financial crisis and is still in short supply.
“The credit union member business lending cap is denying our nation’s small businesses all the tools they need to grow and spur economic activity such as job creation,” Hunt wrote. H.R. 688, the “Credit Union Small Business Jobs Creation Act” introduced by Reps. Ed Royce, R-Calif., and Carolyn McCarthy, D-N.Y., would help credit unions do more to help small businesses “without spending a single dime of taxpayer funds,” Hunt said. She added the approach taken by H.R. 688 has already met with the approval of NCUA and Treasury.
Hunt also pressed for action on H.R. 719, the “Capital Access for Small Business and Jobs Act introduced by Reps. Peter King, R-N.Y., and Brad Sherman, D-Calif. That bill would allow NCUA to authorize credit unions to accept forms of supplemental capital that do not alter their cooperative nature. Hunt said H.R. 719 “would further minimize the probability of credit union insolvency, ensure they are able to maximize lending to small businesses, and allow them to grow to meet the needs of their members.”
Today’s hearing is slated for 2 p.m. Eastern.