news-record.com

Job creation continues to be hotly debated in Washington. While many solutions offered involve spending public funds, one proposal before Congress will create jobs at no cost to taxpayers. Bills before the House and Senate would raise the cap on credit union business loans from 12.25 percent of total assets to 25 percent.

For nearly 100 years, credit unions have made small-business loans to their members. Over that time, credit unions have helped entrepreneurs start businesses and helped many others create jobs through the capital needed to expand existing businesses.
Credit unions are seeing a noticeable increase in the demand for small-business credit. Yet some are unable to satisfy this demand, not because they are unwilling to lend, but due to the limits of this arbitrary cap.

If Congress raises the cap on small-business loans, more than 108,000 jobs would be created nationwide in the first year. Another plus is raising the cap wouldn’t cost the taxpayers a dime.

With more than 500,000 North Carolinians looking for work, I encourage Congress to raise the cap on lending to small businesses. Credit unions stand ready to help businesses create jobs.

John Radebaugh
Greensboro

The writer is president/CEO, N.C. Credit Union League.