This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Credit Unions Would Lend More if the Politicians Would Allow It

The credit union industry -- 7,000 state and federally-chartered U.S. institutions -- counters that there isn't much overlap, i.e., reasons to be worried about market share.

"Obviously, the loans we're making are considerably smaller," Mellin says. "A lot of the loans we're making, frankly bankers aren't interested. Our average is $250,000."

In fact, the average size of credit union loans at year-end 2012 was $217,000, according to the Credit Union National Association, the industry's trade association. Credit union member-business loans represented just 1.5% in market share of total credit union/bank business related loans, CUNA says.

So essentially doubling the lending caps for credit unions wouldn't move the needle drastically in the small business loan market, argues John Magill, CUNA's executive vice president of government affairs.

"We've been working on this for several years,'" Magill says. "We got really close ... particularly in the last Congress, but still the legislation wasn't able to get up to a vote in the Senate. I get the sense on the Hill the masses are getting angry with a do-nothing Congress and they want to show some movement."

Several Congressional members of the House and Senate continue to pledge support for legislation. On the Senate side, longtime proponent, Sen. Mark Udall (D., Colo.) plans to reintroduce a proposal seeking to relax the member business lending caps.

"There's great support for it," says Alex McCarthy, press secretary for Senator Udall. McCarthy couldn't give an exact date on when the senator plans to introduce the bill.

In February, Rep. Edward Royce (R., Calif.) and Carolyn McCarthy (D., N.Y.) re-introduced the idea under H.R. 688, The Credit Union Small Business Jobs Creation Act. Reps. Royce and McCarthy were joined by 34 additional co-sponsors on the legislation.

-- Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to:

>To submit a news tip, email:


Follow TheStreet on Twitter and become a fan on Facebook

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
3 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $128.29 -0.19%
FB $80.95 0.07%
GOOG $576.04 0.47%
TSLA $198.52 -1.90%
YHOO $44.09 0.23%


DOW 18,098.28 -37.44 -0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs