Small Business Finance News
Credit Union President: We Can Help With Credit Crisis
Written by Jenna Weiner
Advocate urges Congress to raise lending limits.
While many small businesses struggle to get loans from banks these days, there are some that see credit unions as a way to help entrepreneurs in need.
Bill Cheney, president and CEO of the Credit Union National Association, recently called on Congress to raise the lending limits for credit unions in order to help the economy grow. BusinessWeek reports that Cheney has been championing pending legislation introduced by Colorado Democrat Mark Udall, which would allow credit unions to make loans to small businesses up to 27.5 percent of their assets. Cheney said that many credit unions have run into problems because of the current limit of 12.25 percent.
"It would free up $10 billion in lending to small business and create 108,000 jobs in the next year," said Cheney in an interview with the news source.
While some are wary of credit unions, proponents point to the fact that all deposits are federally insured for up to $250,000 by the National Credit Union Share Insurance Fund. The fund works in a similar way to the Federal Deposit Insurance Corporation, which insures banks should they fail.
Credit Unions all over the country have been making small business news. The Austin Business Journal reports that the Randolph-Brooks Federal Credit Union recently purchased two buildings in the city in order to open up new facilities.
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