The Iowa Credit Union League said Tuesday that legislation recently introduced by Congressman Bruce Braley to raise the current cap on credit union business lending would increase commercial lending by credit unions by $10 billion nationwide next year. Braley, a Democrat, co-sponsored H.R. 1418, the Small Business Lending Enhancement Act, which would raise the business lending cap from the current 12.25 percent of total assets to 27.5 percent. In Iowa, it’s estimated the increased cap would make $200 million in additional credit available to small businesses and create more than 2,200 jobs. The Iowa Bankers Association claims the legislation would provide an unfair advantage to tax-exempt credit unions.
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