Wyden bill aims to boost credit union small-biz loans

Sen. Ron Wyden, D-Ore., introduced a bill Thursday that would support new jobs and economic growth by providing small businesses greater access to business capital from credit unions.

“Small businesses generate jobs, and access to capital is the lifeline that keeps those businesses running and growing both in Oregon and nationwide,” Wyden said. “This bill would increase opportunities for small businesses to receive loans from credit unions, eliminating an unfair hurdle to that economic lifeline those businesses need.”

The bill would exempt loans for one- to four-unit non-owner occupied dwellings from the member business lending cap of 12.5 percent imposed on credit unions. The legislation would allowcredit unions to treat those loans that qualify for the exemption as residential loans with lower interest rates—similar to when banks make those loans to small businesses.

“Senator Wyden’s bill would be a huge relief to our members who very much want to provide capital for small business,” said Troy Stang, chief executive officer of the Northwest Credit Union Association. “We strongly support this legislation and will work side-by-side with Senator Wyden to pass this essential measure.”

Similar legislation has been introduced in the House by Rep. Ed Royce (R-Calif.)