Mica: Credit unions can inject more than $10 billion into the economy and create $108,000, at no cost to taxpayers, if Congress adopted pending, bipartisan legislation.

CUs Baffled by Biz Lending Snub

By Dan Mica

Credit unions are outraged and baffled that the Administration, by not endorsing greater business lending capacity for credit unions in its small business lending plan, would blatantly ignore the potential contribution credit unions could make toward national economic recovery.

At no cost to the taxpayer, credit unions can inject more than $10 billion into the economy and create 108,000 new jobs if Congress adopted pending, bipartisan legislation in both the Senate and House.

Credit unions are saying that the Administration could have given this legislation, and ultimately small business, a huge boost by endorsing these measures. But the Administration overlooked—or snubbed—the opportunity.

Credit unions tell me that they are not asking for a taxpayer bailout; they did not receive TARP money and did not want it anyway. Yet now, the Administration wants to give taxpayer money to banks through TARP to convince them to make more loans—the same banks that have been refusing to make loans over the last year when it was needed most by an economy starved of capital.

But credit unions have been making loans over the past year and can make even more if legislation expanding their capacity to make small business loans is enacted. I hear credit unions say: “Don’t just subsidize the banks; let us help this country get back on its feet—without using taxpayers’ money.”

Credit unions are truly the peoples’ financial institutions, trusted by more people over banks to do what is in the peoples’ interests. In fact, there are more than 93 million credit union members nationwide, 2.3 million of whom joined credit unions just in the last year.

Credit unions across the nation say they deserve to be treated with respect and should be part of the Administration’s solution. I know they will be contacting the White House and the Congress to deliver that message.

In the meantime: I am respectfully requesting a meeting with the president about this entire issue—and seek the Administration’s support for more business lending capacity for credit unions.

Dan Mica is president/CEO of the Credit Union National Association.