Consumer Federation of America Throws Support Behind MBL (Misc News: April 19, 2012)
The Consumer Federation of America has offered its support of a bill in the U.S. Senate that would increase member business lending authority for credit unions.
According to CUNA News Now, the CFA told senators in a letter that the Small Business Lending Enhancement Act of 2012 (S. 2231) would "expand access to affordable credit for small businesses and help strengthen local marketplaces that serve consumers well."
S. 2231, which is expected to come up for a Senate vote soon, would increase the MBL cap from 12.25 percent of assets to 27.5 percent. CUNA has estimated that raising the MBL cap would create 140,000 jobs and inject $13 billion in new funds into the economy, at no cost to taxpayers.
CFA Executive Director Stephen Brobeck in a letter to senators said MBL cap increase legislation would "benefit consumers both by promoting competition and innovation in local marketplaces and by strengthening credit unions."
Brobeck said credit unions have a strong record of serving consumers and communities, especially moderate-income areas that have been particularly hard-hit by the recession. Credit unions "have had much past success in providing low-cost, sustainable credit to consumers and small businesses.”
Other organizations that have offered their support for MBL include the National Council of Textile Organizations, American Small Business Chamber of Commerce, National Farmers Union, National Association of Realtors, Realtors Land Institute, Small Business Majority, Society of Industrial and Office Realtors, CCIM Institute, Americans for Tax Reform, American Consumer Institute, Hardwood Federation, Institute of Real Estate Management, NCB Capital Impact MultiFunding, National Association of Home Builders, National Association of Professional Insurance Agents, AMT – The Association for Manufacturing Technology, U.S. Women's Chamber of Commerce, and Heartland Institute.