New York Democratic Senator Kristin Gillibrand is grabbing headlines in her state this week for pushing her colleagues to vote on the Small Business Lending Enhancement Act. The legislation, introduced by Colorado Senator Mark Udall in 2011, would address ongoing complaints about limited access to business loans by raising a cap on commercial loans that credit unions are permitted to make, based on a percentage of their assets.
Senate Bill 509, as it is known, "would amend the Federal Credit Union Act to advance the ability of credit unions to promote small business growth and economic development opportunities, and for other purposes." It has been sitting in the Banking Committee since March 2011.
According to a report published by public media aggregator Innovation Trail,
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Passing the act would mean that credit unions could gradually increase their lending capability through a tiered system, with a new upper cap of 27.5 percent. Senator Gillibrand says passing this act would increase