Today, Reps. Ed Royce and Carolyn McCarthy introduced the Small Business Lending Enhancement Act, legislation that will provide much needed financing for small businesses without spending a single tax dollar.
Today, Reps. Ed Royce (R-CA) and Carolyn McCarthy (D-NY) introduced the Small Business Lending Enhancement Act, legislation that will provide much needed financing for small businesses without spending a single tax dollar.
“As the U.S. continues to grapple with both record deficits and high unemployment, Congress must look at proposals that will spur economic growth without saddling the U.S. taxpayers with more debt,” said Royce.
“Small businesses drive the economy in my district on Long Island and in communities all over America. I’m proud to reach across the aisle – and across the country – to help our small businesses and entrepreneurs grow at this critical time,” said McCarthy.
The Small Business Lending Enhancement Act would raise the current credit union member business lending (MBL) cap from 12.25% to 27.5%. To qualify for the higher cap a credit union must be well capitalized, have a history of member business lending experience, be operating near the lower cap for at least one year, and receive approval by the National Credit Union Administration.
"With a projected $1.6 trillion budget deficit, stimulus spending is not an option," said Royce. "This legislation takes an important step in shifting our current economic path and putting Americans back to work. As a result of the Small Business Lending Enhancement Act, credit unions will be eligible to lend up to $10 billion to small businesses within a year, which translates into more than 100,000 new jobs."