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North Bay Business Journal

Monday, September 21, 2009, 10:46 am

RCU works in favor of new lending-limit bill

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    SANTA ROSA – Redwood Credit Union President and CEO Brett Martinez is heading to Washington, D.C., Sept. 22 with more than 40 other credit union leaders to support the passage of the Promoting Lending for America’s Small Business Act (HR 3380).

    Since 1998, credit unions have operated with a statutory limit on member business loans (MBLs) of 12.25 percent of assets. HR 3380, recently introduced by Reps. Paul Kanjorski (D-PA) and Ed Royce (R-CA), would raise that limit to 25 percent of assets.

    “Banks can lend up to 100 percent,” said Mr. Martinez. “Credit unions are only at 12.25 percent of assets, and many credit unions are already against that cap.”

    In addition to raising the percentage, the proposed legislation would also raise the minimum dollar amount for counting a loan toward the MBL ceiling from the current $50,000 to $250,000.

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    Comments

    2 Comments

    1. October 4, 2009, 2:19 am

      by Origninalist

      No, No, No.
      Credit unions were never intended to be business lender .
      As there are fewer and fewer consumer loan requests due to the economic slowdown, this is to augment business lending to replace those consumer loans.

      This country has abandoned its Constitution, its regulatory compliance, its laws, and its morality. This is just another example of it.


    2. October 23, 2009, 10:54 am

      by Greg

      Origninalist: Your assertion that credit unions were never intended is wrong. Credit unions have provided their members with the money needed to farm, start businesses, purchase goods and the like from their beginnings. The limits were placed on credit unions back in 1998 because of the banks – just years after taking billions in taxpayer money to bail them out the first time. Credit unions have never taken a dime of taxpayer money as a bailout.


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