Days after President Barack Obama announced a proposal that provides incentives to community development credit union to help small businesses, CUNA continued to call for increased member business lending authority.
"I believe the Administration and Congress should support small business and take steps to ensure credit is available to them which will promote oncoming recovery," Mica wrote. "With all due respect, however, an important element is missing. That is, support for increased member business lending at credit unions-a step that would boost our economy as well as help local communities through the country," wrote CUNA President/CEO Dan Mica in an Oct. 22 letter to Obama.
While business lending at all banks has declined by more than 8% credit unions have posted business loan growth of 14% over the same 12-month period ending in June of this year, Mica said.
"That is because small business members are turning to their credit unions for loans because they cannot find credit elsewhere, including at banks," Mica wrote, adding "this growth cannot continue under current statutory restrictions of a cap on business lending by credit unions."
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