Credit unions in Chautauqua and Cattaraugus counties will have more lending power to small businesses if new legislation passes. Legislation being backed by U.S. Senator Kirsten Gillibrand could affect 19 credit unions in Chautauqua and Cattaraugus counties with an increase in the amount of money available for potential lending.
Sen. Gillibrand is pushing for the bipartisan Small Business Lending Enhancement Act which will allow credit unions to led up to 27.5 percent of total assets instead of the 12.25 percent limit required by law.
"This commonsense legislation would free up lending at not-for-profit credit unions in every corner of America to small businesses. This simple rule change wouldn't cost a dime from the federal government while giving small businesses more of the capital they need to get off the ground, grow and get thousands of Americans back to work," Sen. Gillibrand said.
This legislation will create more than 11,000 new jobs across the state. In Chautauqua County, a total of 11 credit unions have 48,720 members. These credit unions will have an increase of $777,395 in money for potential lending. In Cattaraugus County, eight credit unions have 32,222 members. Legislation would have an increase in $201,878 for potential lending.
"If we're going to create new jobs and rebuild our economy for the long term, small businesses need more access to credit," Sen. Gillibrand said.
Small businesses have generated nearly two thirds of all new jobs since 1997. With the economy recently, business owners have struggled to get funds through credit of traditional banks. Credit unions have funds but due to governmental restrictions, are unable to lend the money. The National Credit Union Administration will review all applications under the new legislation. The Administration reviews applications to ensure responsible lending and credit unions wanting to extend their lending capabilities would do so in a tiered process.
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