Help CCU Support Small Business
Dear Members,
During the most recent economic recession, we heard a lot about the tightening of credit and the banks’ inability or unwillingness to lend to small businesses. According to the Wall Street Journal, at the end of 2009, U.S. banks had experienced their most drastic lending decline since 1942. However, although banks weren’t lending, credit unions were. So much so, in fact, that many credit unions (including Corning Credit Union) are now rapidly approaching the arbitrary member business lending cap that is enforced by law. Legislation was recently introduced in Congress that would raise this lending cap and allow credit unions to continue making loans to small businesses. It is with gratitude that we note that this legislation has had the vigorous support of Senators Schumer and Gillibrand, as well as Congressman Reed, from New York. Now we are asking you, our members, for your support of this measure so we can continue investing in our local communities.
Background
Unlike banks, credit unions are limited in the amount of business loans they can make to members. Today, this cap stands at 12.25 percent of the credit union’s total assets and data from the National Credit Union Administration shows that nearly 300 credit unions are already at or near this cap. The proposed legislation would increase this cap to 27.5 percent of assets for credit unions that have demonstrated strong business lending experience and responsible lending practices. According to the Credit Union National Association, raising the cap to 27.5 percent of assets would generate $13 billion in new small-business loans in the first year alone, which would lead to creation of 140,000 new jobs – an economic stimulus without any taxpayer burden.
Over the last five years, Corning Credit Union has loaned over $100 million to businesses in our local community. We are proud to support this vital sector of the economy, which is the engine of growth and new jobs in our community and across the country. In addition, we were honored as the Small Business Administration’s “Top SBA Small Community Lender” in the 34-county Syracuse District in 2011 for the third straight year. Our members have thanked us again and again for our dedication to helping businesses at a time when many other financial institutions cut back on the financing they offer.
How You Can Help: Send a Message!
While economic conditions may be improving, the nation still needs more jobs and small businesses are still in search of affordable and accessible options for capital. And unfortunately, banks are strongly advocating against credit unions on this issue, even though they are not lending themselves. Please help us by visiting this link to tell your local representatives that credit unions should not be limited in their ability to lend to small businesses.
Thank you in advance for your support of credit unions and this very important issue. Should you have any questions about business lending or anything discussed in this letter, please don’t hesitate to contact us.
Sincerely,
Gary Grinnell
President and CEO
Gary Grinnell speaks about Credit Union Member Business Lending legislation and its importance to small business owners across the country.
North Carolina small business owner Tia Saffo discusses why access to capital is so important to her business and why Senators should vote in favor of the Credit Union Small Business Jobs bill.
North Carolina small business owner Ken Dull discusses why access to capital is so important to his business and why Senators should vote in favor of the Credit Union Small Business Jobs bill.
North Carolina small business owner Burney Morris discusses why access to capital is so important to his business and why Senators should vote in favor of the Credit Union Small Business Jobs bill.