Senator wants to increase opportunities for job-creating companies to receive credit union loans.
Washington, DC – Sen. Ron Wyden, D-Ore., introduced a bill that would support new jobs and economic growth by providing small businesses greater access to business capital from credit unions.
“Small businesses generate jobs, and access to capital is the lifeline that keeps those businesses running and growing both in Oregon and nationwide,” Wyden said. “This bill would increase opportunities for small businesses to receive loans from credit unions, eliminating an unfair hurdle to that economic lifeline those businesses need.”
“We appreciate Senator Wyden’s support for credit unions and our ability to increase small business lending,” said Kyle Frick of Mid Oregon Credit Union. “This legislation would be a positive step in allowing additional capital to be utilized for credit union portfolio diversification at a time when housing is an issue in our community. We would welcome this ability to direct additional lending to this important need.”
The bill would exempt loans for one- to four-unit non-owner occupied dwellings from the member business lending cap of 12.5 percent imposed on credit unions. The legislation would allow credit unions to treat those loans that qualify for the exemption as residential loans with lower interest rates—similar to when banks make those loans to small businesses.
“Senator Wyden’s bill would be a huge relief to our members who very much want to provide capital for small business,” said Troy Stang, chief executive officer of the Northwest Credit Union Association. “We strongly support this legislation and will work side-by-side with Senator Wyden to pass this essential measure.”
Similar legislation has been introduced in the House by Rep. Ed Royce (R-Calif.). Attached is Senator Wyden’s introductory statement and a one-page summary of the bill.