Credit Unions have been the topic of late in the business loan industry because of the growing support for S.2231. This is the bill known as the Small Business Lending Enhancement Act designed to raise the limits on Credit Union Business Loans.
Few realize that Credit Unions enjoyed no limit lending until 1998 when a strict 12.25% cap based on their total assets was imposed which. The current push to raise this cap to 27.5% has issuers of traditional business loans on edge but most feel it would help the economy.
The infographic below illustrates the history of the fight and what the passage of S.2231 would mean for small business owners around the country. Of course only well qualified borrowers will be pursued by the aggressive credit unions if they are allowed to increase lending, but the following insight should be interesting to all.