News Releases | November 28, 2012

Small Businesses Need Credit Unions Too!

Austin, TEXAS — November 28, 2012 — Credit unions in Texas and across the United States have made Member Business Loans (MBLs) since the early 1900s. For over 60 years credit unions faced no limits on the number or amount of member business loans (MBLs) they could make. This changed in 1998, when Congress passed the Credit Union Membership Access Act. Among numerous items in this bill, Congress imposed for the first time arbitrary limits on MBLs, effectively capping total MBL lending to 12.25% of a credit union's total assets. The cap on MBLs has restricted the capital available to business owners, particularly those who own smaller companies. A growing number of credit unions offering MBLs are hitting the cap, forcing them to turn away credit-worthy small business owners who seek loans to expand their companies.

To learn more about this very important legislation and to contact your Senator, visit www.cuvoice.com.