Credit Unions ‘Fact Check’ ABA Talking Points, Continue to Rally MBL Support

As credit unions continue to push for the passage of S. 2231, a bill that would raise the cap on credit union member business lending (MBL) from 12.25 percent of assets to 27.5 percent, the banks continue their attempts to put up roadblocks.

The American Bankers Association (ABA) issued talking points this week in opposition to the measure, which were also shared with Senate offices, containing a great deal of misleading information. Credit unions have responded with a document of their own entitled, “Fact-Checking the ABA Propaganda.

The document refutes a number of the banks’ claims, including explaining how the cap affects credit unions of all sizes, clarifying the typical type and amount of a credit union business loan and outlining the business lending market shares currently held by banks and credit unions.

To the banks’ final point, which says that the “legislation is very controversial and deserves the Senate’s full deliberation,” the document states, “This issue is not new and it should not be controversial. Legislation to reform the cap has been introduced in each of the last four Congresses. It is only controversial because the banks don’t like it. Everyone else thinks it’s a no-brainer.”

Northwest Credit Unions Extend MBL Push

The MBL issue continues to receive a great deal attention from credit unions and media outlets on a regional level as well as nationally. The Northwest Credit Union Association (NWCUA) committed this week to a high-profile advertising campaign in Washington, taking out a half-page ad in the Seattle Times on Thursday urging public support of S. 2231, running online ads on the Seattle Times’ website Wednesday through Friday—where 525,000 impressions are expected—and placing a half-page ad in the Spokane Spokesman Review.

Individual credit unions, meanwhile, who have encouraged support of the MBL legislation from a number of angles, are maintaining their breakneck pace.

KREM 2 News of Spokane, Wash., also went into detail on the MBL issue in a recent newscast, crediting “11 credit unions across Eastern Washington” as having working together “to help small businesses.

 

 

Stephen Pagenstecher, board president of the NWCUA’s Capitol Chapter of Credit Unions and vice president of member relations for Valley Credit Union, issued a call-to-action to his chapter despite the fact that Valley Credit Union, a smaller credit union, does not currently do any member business lending. Pagenstecher said that a legislative win for credit unions is important for the broader movement and for Valley’s future regardless of its impact today.

How to Get Involved

To voice your support of S. 2231 and of the credit union movement, visit the NWCUA’s MBL Action Page, which offers simple ways to contact legislators and share the importance of this measure with friends and family.

 

Questions? Contact a member of the Association’s Legislative Affairs team:

Jennifer Wagner, Vice President of Legislative Advocacy
Mark Minickiello, Vice President of Legislative Affairs
Stacy Augustine, Senior Vice President & General Counsel

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