Statement of the Honorable Debbie Matz Chairman
National Credit Union Administration
"H.R. 1418: The Small Business Lending Enhancement Act of 2011"
Before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit
Wednesday, October 12, 2011
Chairman Capito, Ranking Member Maloney, and Members of the Subcommittee, the National Credit Union Administration (NCUA) appreciates the invitation to testify before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit to provide views on credit unions, member business lending, and legislation proposed by Congressman Edward Royce and Congresswoman Carolyn McCarthy known as the Small Business Lending Enhancement Act of 2011 (H.R. 1418). This hearing is an opportunity to consider legislation that would help small businesses grow, create new jobs, provide needed community services, and bolster the U.S. economy.
Specifically, the Subcommittee has asked NCUA to comment on H.R. 1418, including the effect of this legislation on economic growth and competitiveness. The Subcommittee has also asked whether H.R. 1418 contains appropriate safety and soundness protections. In general, H.R. 1418 would increase access to credit for small businesses in a way that prudently protects safety and soundness. As a result, NCUA supports H.R. 1418.
This written testimony will provide a general background and history of credit union member business lending, including the reasons why statutory member business loan limits often inhibit credit unions from meeting the financing needs of creditworthy members who are self-employed or small business owners. It will highlight current member business lending trends as the U.S. economy, including credit unions, continues to rebound from the largest financial crisis since the Great Depression. Most importantly, it will demonstrate how prudently raising the MBL cap would benefit small businesses, local communities, and the U.S. economy...