FRA’s Board has identified the credit crisis afflicting loggers and other small businesses in the wood supply chain as a policy priority for FRA, and FRA has endorsed the Credit Union Small Business Jobs Bill (S 2231, HR 1418). This Bill would enable federal credit unions that meet stipulated requirements to increase the percentage of their assets that they may make available as loans to small businesses. Legislation passed in 1998 limited that percentage to 12.25%; the bill would raise that cap to 27.5%.
In our judgment, and that of the Credit Union National Association—the key promoter of the bill—credit unions, based in local communities and governed by members, are in a good position to understand local businesses’ risk and to make lending decisions based on a realistic understanding of it.
According to CUNA, the Senate leadership intends to bring the bill to the floor during the “lame duck” session following the Election.