WASHINGTON — Credit unions today came a small step closer to their goal of raising the cap on member business loans when Treasury Department Counselor Gene Sperling and House Financial Services Committee Chairman Barney Frank promised action on additional proposals.

Sperling, in response to a question from Frank at a hearing on expanding small business lending, said the Obama administration supports raising the cap in some instances and would send Congress a proposal that would accomplish that soon. He said they endorse a plan to lift the cap up to 27.5% if the credit union is well capitalized, has done member business lending for at least five years and show that they have done sound underwriting and servicing.

The proposal contains more restrictions, yet allows more leeway, than the language of the legislation currently pending on Capitol Hill.