Congressman William Lacy Clay (D-District 1) has signed on as a cosponsor to H.R. 688, the Credit Union Small Business Jobs Creation Act. He is the first cosponsor on this bill from Missouri, and also supported the member business lending (MBL) bill introduced in the last Congress.
The bill raises the member business lending cap from 12.25 to 27.5% of total assets for credit unions, which would help small business owners have more access to the loans they need. Statutory limits on credit union member business lending did not exist until passage of the Credit Union Membership Access Act of 1998 which imposed the cap of 12.25% of a credit union's total assets. There is no economic rationale for this artificial, government-imposed limit.
It is estimated that if the MBL cap is lifted, 1,719 new jobs could be generated and an additional $158,152,136 in business loans made to small business entrepreneurs in Missouri in the first year. Nationwide, it would bring 158,000 new jobs and $14.5 billion in new member business loans. There is no taxpayer cost to the legislation.
“Congressman Clay understands the need for this bill and stated his intent to sign on as a cosponsor during our meeting with him in Washington, D.C.” said Don Cohenour, Missouri Credit Union Association president/CEO. “We greatly appreciate his efforts to support small business owners and help credit unions serve a growing need in our communities.”
Congressman Clay serves on the House Financial Services Committee, which handles most legislation introduced in regards to credit unions.
Credit unions are urged to thank Congressman Clay for supporting the member business lending legislation by contacting (202) 225-2406, or through Congressman Clay’s website: http://lacyclay.house.gov/index.cfm?sectionid=90§iontree=3,90.
If additional information is needed, contact Amy McLard at email@example.com or 314.542.1370.
Photo: Congressman Lacy Clay (D-District 1) discusses credit union concerns, including member business lending, with Missouri credit union representatives during the Governmental Affairs Conference.