MBL Hearing Before House Subcommittee Scheduled (Misc News: September 28, 2011)
The House Financial Services subcommittee on financial institutions has set Oct. 12 for a hearing on member business lending.
Rep. Shelley Moore Capito, R-W.Va., had promised a hearing before the Subcommittee on Financial Institutions and Consumer Credit, which she chairs, but a date had not been set.
CUNA’s News Now reported that it is still working with Congress to find a vehicle for the legislation to lift the MBL cap.
H.R. 1418, which was introduced by Rep. Ed Royce, R-Calif., has a total of 80 co-sponsors, according to www.govtrack.us. Similar Senate legislation (S. 509) has also been introduced by Mark Udall, D-Colo. That bill has 20 cosponsors.
Seven Michigan representatives are among the co-sponsors. The congressmen are Republicans Thaddeus McCotter and Candice Miller and Democrats Gary Peters, Dale Kildee, John Conyers and Hansen Clarke. Michigan Democratic Sen. Debbie Stabenow and Carl Levin are also co-sponsors of the legislation in the Senate.
Michigan has two members of the House subcommittee that has scheduled the hearing on the bill: McCotter and Republican Bill Huizenga. Huizenga has not taken a position on the bill.
Currently, credit unions are limited to loaning 12.25 percent of assets for business loans. CUNA is supporting a proposal by the NCUA and U.S. Treasury Department to increase the limit to 27.5 percent. CUNA estimates that the change would inject $13 billion into the economy, leading to the creation of 140,000 jobs.
CUNA has suggested that MBL cap lift bills should be added to the Obama administration's larger plan to reinvigorate the ailing economy.
"You can't credibly talk about the issue of job creation without also talking about MBLs," Richard Gose, CUNA senior president of political affairs, told News Now on Monday.