Mark Cummins, president/CEO of the Minnesota Credit Union Network, is among the growing chorus of industry leaders urging for the lift of the 12.25% of assets member business lending cap.
"As credit unions begin to approach their business lending limit, they will be forced by statute to lend less. That's not what our country needs right now," wrote Cummins in a March 25 letter, which ran in Finance and Commerce. "Credit unions have been making small business loans since they were formed in the U.S. 100 years ago. And in the first 90 years of existence, there was no business lending cap at all. Now is the time to raise the limits-a measure that would not cost taxpayers a dime or increase the size of government."
Cummins said Minnesota CUs "are being overwhelmed with requests from small businesses." Member business lending in the state has increased by 0.4% over the past year and while that might not seem like a huge jump, "any gain is impressive in today's economy." Still, Minnesota CU business lending is up 47% over the past four years, he added.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.