Proposal would allow credit unions to lend more to businesses
Senator Kirsten Gillibrand is pushing for Congress to increase the amount of money credit unions can loan businesses.
Currently, credit unions must limit their business lending 12.25 percent of their assets. The proposed legislation would gradually double that amount to 27.5 percent, which Gillibrand says would help give small businesses capital they need to grow and create jobs.
"Very importantly, this doesn't cost a dime of federal money,” said Gillibrand. “And it just gives small businesses a different avenue for access to capital, which will help them to grow."
According to the Democrat senator, there are 35 credit unions in central New York and 22 credit unions in the North Country that would be affected by this rule change.
The banking industry has been against changing the rules for credit unions, fearing it would mean less business for banks.