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FOR IMMEDIATE RELEASE | May 16, 2013

NAFCU Hails Sen. Udall's Introduction of Small Business Lending Enhancement Act

FOR IMMEDIATE RELEASE
May 16, 2013

NAFCU Hails Sen. Udall's Introduction of Small Business Lending Enhancement Act


Washington - The National Association of Federal Credit Union's (NAFCU) President and CEO Fred R. Becker Jr. hailed the efforts of Sens. Mark Udall (D-Colo.) for introducing The Small Business Lending Enhancement Act of 2013, the legislation that would raise the arbitrary credit union member business lending (MBL) cap to 27.5 percent for eligible credit unions.

"NAFCU thanks Sen. Udall and the other bipartisan cosponsors of The Small Business Lending Enhancement Act, and their staffs, for recognizing the value of credit unions as providers of credit to small business and for moving forward a key priority in NAFCU's five-point plan for comprehensive regulatory relief," said Becker. "Americans need jobs, and more money for small businesses means more jobs. An increase in the MBL cap will help our nation's credit unions do more to help small businesses create jobs and fuel economic growth."

"We look forward to working with the Senate in moving this measure forward," Becker said.

Udall's bill, which is similar to legislation he introduced in the last Congress, would allow a credit union to gradually increase its business lending to 27.5 percent of assets under certain conditions:

• the credit union is well capitalized (currently 7 percent net worth ratio);
• the credit union has been at or above 80 percent of its current 12.25 percent MBL cap for the past four consecutive quarters;
• the credit union has five or more years of MBL experience;
• the credit union has the requisite policies and experience in managing MBLs; and
• the credit union has satisfied other standards which the NCUA Board "determines are necessary to maintain the safety and soundness of the insured credit union."

Other bill cosponsors include Sens. Mark Begich (D-Alaska), Barbara Boxer (D-Calif.), Sherrod Brown (D-Ohio), Susan Collins (R-Maine), Kirsten Gillibrand (D-N.Y.), Patrick Leahy (D-Vt.), Rand Paul (R-Ky.), Bill Nelson (D-Fla.), Jack Reed (D-R.I.), Bernie Sanders (I-Vt.), Charles Schumer (D-N.Y.), Sheldon Whitehouse (D-R.I.), Martin Heinrich (D-N.M.), and Angus King (I-Maine).

Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) introduced the companion legislation, H.R. 688, The Credit Union Small Business Jobs Creation Act, in February of this year.

NAFCU is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.

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Contact:Patty Briotta | 703-842-2820 | pbriotta@nafcu.org