80% of Wisconsin voters support legislation to boost small business credit
80% of Wisconsin voters polled by the Wisconsin Credit Union League say they support the Credit Union Small Jobs Bill. The proposed legislation, S. 2231/H.R. 1418, would raise the credit union member business lending cap from 12.25% to 27.5% of total assets. The bill would free up $14 billion in capital creating 157,000 new jobs nationwide. In Wisconsin, it would create $458 million in new business credit and add almost 5,000 new jobs in the first year alone and at no cost to taxpayers.
Wisconsinites contacted Congress nearly 14,000 times in 2012 in support of S. 2231/H.R. 1418 through email, letters, phone calls, and in person meetings. The bill has gained such strong support because:
- Small businesses say there’s a credit gap; research finds 90% of small firms agree. A 2011 study from Pepperdine University shows that banks are denying the majority (60%) of loan applications.
- Credit unions have done all they can. Since the start of the recession in 2007, Wisconsin banks decreased their business lending by 2% while Wisconsin credit unions grew theirs by 55% to compensate.
- Credit unions' hands are tied from offering additional help. Almost ALL credit unions either deny loans because of the cap or can’t offer any because the cap prevents cost recovery.
- The legislation would add close to 5,000 jobs in Wisconsin the first year alone.
- It helps Main Street. Half of credit union business loans help families with income under $50,000.
- It costs taxpayers nothing. It’s been called a “no brainer” by the bill’s lead author, Colorado Senator Mark Udall, as well as Forbes.
- Federal regulators support it. Wisconsin credit unions have had a lower rate of business loan delinquency and losses than banks for more than a decade and have made those loans safely for 100 years.
- A bipartisan coalition of more than 30 organizations supports it. They represent small businesses, the self-employed and the insurance, textile, realty, construction, automotive and technology industries.
- It won't hurt banks. Banks hold 95% of U.S. business loans; this legislation won’t dent their market share. In fact, almost half of banks support the legislation.
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