Financial Organization Calls For Congress To Take Action
The Federal Reserve Bank of New York released the results of a new poll last week which showed that New York’s small businesses are still having trouble borrowing, suggesting that banks have not loosened their lending standards since the economic crisis began four years ago.
The poll also indicated that business microloans (under $100,000) are highest in demand and toughest to secure. And, of those that did receive funding, the majority did not get the full amount they applied for.
“Small businesses are the engine of growth for our economy here in New York and across the country,” said William J. Mellin, president and CEO of the Credit Union Association of New York. “Statistics show that credit unions have stepped up during the recent financial crisis to help fill a void in the availability of business credit. They could do even more if Congress would pass proposed legislation raising the member business lending cap from 12.25 percent to 27.5 percent.”
According to the Credit Union National Association, New York credit unions could infuse nearly $1 billion in tax-free capital to small businesses ($13 billion nationwide), creating approximately 10,000 jobs (140,000 nationally), if Congress enacts H.R. 1418, the Small Business Lending Enhancement Act. The Obama administration has endorsed this legislation.
Rep. Carolyn McCarthy of Long Island is an original sponsor of the House legislation. Local Representatives Gary Ackerman, Gregory Meeks and Bob Turner have also signed on as co-sponsors. Senators Charles Schumer and Kirsten Gillibrand signed on as leading co-sponsors of the corresponding Senate legislation.