Speaking at an Aug. 4 hearing before the U.S. House Subcommittee on Finance and Tax, OSU Federal Credit Union CEO Rick Hein told legislators that if certain restrictions were removed, credit unions could help small businesses access capital.
Hein, who was invited by the panel's chairman, Rep. Kurt Schrader (D-Ore.), spoke on removing the 12.25% of assets cap on member business loans. In his testimony, Hein cited CUNA estimates showing credit unions could make up to an additional $10 billion in business loans in the first 12 months if there was no lending cap.
"It was an honor to be asked by Congressman Schrader to participate in this important discussion and talk about the role credit unions can play in helping small businesses succeed and work their way back after this recession," Hein said in a statement. "Removal of the cap on member business lending would be a significant step toward getting capital flowing again in our region."
Last week, HR 3380, the Promoting Lending to America's Small Businesses Act, was introduced in Congress. The bill would raise the cap on member business lending from 12.25% of assets to 25%. The bill would also raise the de minimus threshold for a loan to be considered a member business loan and exempt loans made to nonprofit religious organizations as well as in qualified underserved areas.
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