Bill Text: NJ AR64 | 2016-2017 | Regular Session | Introduced
Bill Title: Urges Congress to enact "Credit Union Small Business Jobs Creation Act."
Sponsorship: Partisan Bill (Democrat 5)
Status: (Introduced - Dead) 2016-02-22 - Reported out of Assembly Committee, 2nd Reading [AR64 Detail]
Download: New_Jersey-2016-AR64-Introduced.html
Sponsored by:
Assemblyman TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Urges Congress to enact "Credit Union Small Business Jobs Creation Act."
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the United States Congress to enact the "Credit Union Small Business Jobs Creation Act."
Whereas, The "Credit Union Small Business Jobs Creation Act," currently pending in the House of Representatives, aims to stimulate economic growth and job creation by amending the "Federal Credit Union Act" of 1934 by increasing the member business lending cap for federally charted credit unions, thereby providing more access to credit for small businesses; and
Whereas, The "Credit Union Small Business Jobs Creation Act" permits a credit union that is approaching the current statutory small business lending cap of 12.25 percent of its total assets to apply to the National Credit Union Administration for permission to increase its small business lending, up to 27.5 percent of the credit union's total assets; and
Whereas, Credit unions have successfully been meeting the credit needs of their small business members since the early 1900s, but, unlike national banks, have been limited in lending to 12.25 percent of their total assets since the passage of the "Credit Union Membership Access Act" of 1998; and
Whereas, Despite these restrictions, credit unions have demonstrated a dedication to serving small businesses by increasing small business lending by 45 percent during the recession while banks decreased their small business lending by 15 percent; and
Whereas, The United States Small Business Administration estimates new small business lending would make up 80 percent of the additional credit union lending that would result from the passage of the "Credit Union Small Business Jobs Creation Act," indicating that small business lending has room to expand without significantly impacting national banks' share of the market; and
Whereas, Increasing member business lending up to 27.5 percent of credit unions' total assets would significantly expand the support our nation's credit unions provide to small businesses, and it is estimated by the National Credit Union Administration and the Credit Union National Association that credit unions could lend an additional $16 billion to small business owners throughout the country, creating approximately 150,000 new jobs in the first year after the law takes effect; and
Whereas, The impact in New Jersey could be equally substantial, bolstering small businesses with an additional $300 million and creating 2,800 new jobs; and
Whereas,
Without any cost to taxpayers, the "Credit Union Small Business Jobs Creation
Act" provides an opportunity for Congress to support small businesses,
stimulate the economy, and promote private sector job creation by modifying an
outdated member business lending cap and by permitting credit unions to
securely increase their small business lending capabilities; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The United States Congress is respectfully urged to enact H.R.1188 designated as the "Credit Union Small Business Jobs Creation Act" which would permit eligible credit unions to increase their small business lending from 12.25 percent to 27.5 percent of their total assets.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Majority Leader of the United States Senate and the Speaker of the House of Representatives, and to each member of Congress elected from the State of New Jersey.
STATEMENT
The "Credit Union Small Business Jobs Creation Act," currently pending in the House of Representatives, seeks to amend the "Federal Credit Union Act" of 1934 and increase the member business lending cap for federally charted credit unions. The bill permits a credit union that is approaching the current statutory small business lending cap of 12.25 percent of its total assets to apply to the National Credit Union Administration for permission to increase its small business lending, up to 27.5 percent of the credit union's total assets. As a result, small businesses throughout the country would have increased access to credit, leading to economic growth and job creation.
Historically, credit unions have participated in member business lending loans without limitation. In 1998, the "Credit Union Membership Access Act" imposed the current 12.25 percent cap of total assets for lending to small business members. Despite this restriction, credit unions have demonstrated their dedication to small businesses by increasing lending by 45 percent during the recession. In comparison, and with no equivalent cap, national banks decreased their small business lending by 15 percent. Raising the credit union small business lending cap up to 27.5 percent of the credit union's total assets, however, would not detract from national banks' share of the small business lending market. According to the United States Small Business Administration, new business lending would make up 80 percent of credit unions' additional lending.
This secure approach to increasing member business lending would significantly expand credit unions' ability to support small businesses. The National Credit Union Administration and the Credit Union National Association estimate credit unions could lend an additional $16 billion to small business owners throughout the country, creating approximately 150,000 new jobs the first year after the bill becomes law. The impact in New Jersey could be equally substantial, bolstering small businesses with an additional $300 million and creating 2,800 new jobs.
The "Credit Union Small Business Jobs Creation Act" provides an opportunity for Congress to support small businesses without any cost to taxpayers. By modifying an outdated member business lending cap, Congress can give credit unions the permission to securely expand their lending capabilities and provide small businesses with the additional credit necessary to stimulate the economy and create private sector jobs.
