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.