Wisconsin CU League News Release - 11/27/12
80% of Wisconsin voters support legislation to boost small business
credit
Pewaukee, WI - A whopping
80% of Wisconsin voters polled by the Wisconsin Credit Union League say
they support The Credit Union Small Business Jobs Bill—legislation
that would add $408 million of new credit for Wisconsin businesses
through credit unions. The legislation, H.R. 1418/S. 2231, is expected
to come up for a vote by the U.S. Senate during the Lame Duck session of
Congress, between now and Christmas.
The bill, which would make more business credit
available by raising an arbitrary cap on credit
unions’ member business lending assets from 12.25% of assets to
27.5% of assets, has gained steam 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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Credit unions are cooperative financial institutions that are owned
by their members and do not have stockholders. Because they are
not-for-profit, they return earnings to members via more competitive
rates of return on accounts, lower interest on loans, lower fees and
improved services. Around 2.3 million Wisconsin residents belong to
credit unions, of which nearly half are open to the local
community. Find a credit union to join by visiting www.asmarterchoice.org.
The League’s REAL Solutions Scorecard explains how credit unions
returned more than $201 million to their members in 2011 and served
their communities regardless of profit. It is available at www.theleague.coop/scorecard.
| 80% of Wisconsin voters support legislation to boost small business credit |
