Congress, Stop Squabbling and Let Credit Unions Make More Small Business Loans

What’s Not to Like?

Senator Mark Udall

Plenty say the banks—especially community banks—who raise all kinds of objections that seem to boil down to the fact that they don’t like the competition. Credit unions, of course, say that’s overblown.

“We believe that many of the additional business loans granted by credit unions once the cap is increased would not be loans otherwise made by banks. They would be loans too small for a bank to consider, or to borrowers unwilling to deal with a bank,” wrote Cheney in a letter to members of Congress.

The biggest hurdle may ultimately be a sharply divided Congress made up of members that often seem more interested in talking about getting the economy going again than actually doing something about it.

Senator Udall’s response to the squabbling? “I realize that by introducing this amendment I’m getting in the middle of a fight between banks and credit unions as epic as the Hatfields vs. the McCoys. But this is about helping small businesses—and helping get Americans back to work,” he told Credit.com in a written statement, adding that, “With this bill we can safely and responsibly expand the capital available to small businesses and create over 100,000 jobs in the first year alone—and without spending a dime of taxpayer money. “

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While members of Congress duke this out, Hermann says The Bagel Factory is ahead of projections and “growing like wild.” She’s employed twelve people who were out of work.

And she’s become an advocate for the credit union cause, even travelling to Washington, D.C., to make the case for lifting the cap. “(Credit unions) are out for the people, not for big bonuses for themselves,” she says. “The banks very blatantly said no to me, and the credit union was willing to go out on the limb for me. “

Then she was off to deliver thirty-five dozen bagels.

Have you had trouble getting a small business loan? Learn more lifting the cap on small business lending and weigh in here.

Image: Wikimedia Commons