This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Small Business Owners Need Credit Union Lending Power

After banks turn them away, small businesses are asking Congress to let credit unions do more.

SAN ANTONIO, April 13, 2012 /PRNewswire-USNewswire/ -- When they wanted to open a daycare center, the Frescas family went to 15 different banks in El Paso, all of whom denied them a small business loan. Suzanne and John Hermann were turned away from half a dozen banks in San Antonio when they were ready to open their bagel shop. Mike McLean was a loyal bank commercial customer for 15 years yet was turned down when he was ready to expand his successful business.

(Photo: )

All three of these entrepreneurs had one bit of good luck, though. They belonged to credit unions. In each case a credit union willingly stepped in to provide a loan. Now these successful business owners have joined hundreds of other small business owners across the country in asking their U.S. senators to vote to raise the cap on credit union business lending.

Now more than ever, small business owners need the help of credit unions to launch or expand their businesses. However, Congress put an arbitrary cap on how much credit unions can loan to their small business members. Banks have no such limits. "Small business lending is restricted by an arbitrary cap of 12.25% of assets put into place by Congress in 1998," said Dick Ensweiler, president and CEO of the Texas Credit Union League. "We've been fighting to have it increased ever since."

The U.S. Senate will have a chance to raise that cap to 27.5%  when they vote on Senate Bill 2231, the Credit Union Small Business Jobs Act, in the coming weeks.

"If there is one lesson from this economy that has come home to our family, it's the critical need to get capital flowing for small business," said Suzanne Hermann, owner of the Bagel Factory. "It's why we're concerned over limits that keep healthy financial institutions from lending. Credit unions are an important option for small businesses, and one we should have available. We ask our senators to step up for small business and vote for Senate Bill 2231."

About Texas Credit Union LeagueThe Texas Credit Union League is the state trade association serving more than 500 credit unions in Texas. Organized in 1934, the Texas Credit Union League supports credit unions, not-for-profit, member-owned, volunteer-directed cooperatives, which in turn are owned by over 7 million members. For more information, visit


1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.76 -2.81%
YHOO $36.61 0.06%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs