Naturally, big banks don’t like the idea, nor do they like the legislation proposed by Udall. Bank of America Stock Quote: BAC) and Wells Fargo (Stock Quote: WFC) have already started lending more to small businesses. So critics can say any move to raise lending limits for credit unions wouldn’t have the impact CUNA says it would.
“Raising the current cap on credit unions’ business lending is an action which would benefit only half of one percent of all credit unions in the nation,” says Rose Oswald Poels, senior vice president and counsel of the Wisconsin Bankers Association. Credit Unions historically have not been big lenders to small businesses – CUNA estimates that only 23% of all U.S. credit unions offer commercial lending services.
In the end, it might come down to who has the louder voice and better lobbyists in Washington.
But with legislation already written, at least the financing plight of small business owners will be in the national spotlight.
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