Wis. Credit Union League President Calls For Change To SMB Credit Lending Regulations
Written by Ken Gaebler
Restrictions on lending caps and credit can prohibit many small businesses from receiving enough capital to spur growth. As a result, companies are offering small businesses special rewards to help bolster SMB success.
The Wisconsin Credit Union League's Brett Thompson recently wrote an opinion piece in Madison.com calling on the financial industry to better enable small businesses to receive adequate loans for growth and job creation. According to Thompson, many major U.S. lenders are not interested in allocating small business loans because the loans are too small to increase shareholder profits.
Credit unions, however, routinely make small loans to small enterprises because they do not have shareholders, and work to meet the needs of their member-owners, Thompson said. In addition, he predicts credit unions could add $405 million in new credit, creating 4,400 new jobs in Wisconsin alone.
But many credit unions cannot hand out more small business loans because they have reached the federal lending cap of 12.5 percent of assets. Thompson believes if this cap was removed or at least raised to 27.5 percent of assets, more small businesses could receive funding to help prosper.
Also working to help boost small business lending and credit, Capital One Financial is offering more rewards to small business owners with the launch of the Small Business Credit Card Portfolio - Spark Business. The Spark Miles and Spark Cash cards offer higher value rewards to help small businesses grow and reinvest their savings into job creation and growth. The cards offer double miles or 2 percent cash back on every purchase.
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