Sens. Ron Wyden (D-OR) and Lisa Murkowski (R-AK) recently introduced a bill designed to spur the growth of small businesses and local economies.
The senators said the Credit Union Residential Loan Parity Act would giving local credit unions more flexibility to offer loans to small businesses while allowing credit unions to treat loans for small residential buildings as residential loans with lower interest rates, similar to how banks make those loans to small businesses.
“Our bipartisan bill puts credit unions on equal footing with banks when it comes to lending and investing in their local communities,” Wyden said. “It gives local credit unions flexibility to provide small businesses with the loans they need to grow their businesses and encourages community investment in affordable housing. It’s a no-brainer that when small businesses succeed, they create jobs and economic opportunities that benefit communities across Oregon and nationwide.”
Currently, credit unions are limited by a member business lending cap that banks are not subject to, officials said, noting removing small residential loans from the business lending cap for credit unions would provide small business owners with better access to financial capital through credit unions.
“This legislation simply makes sense,” Murkowski said. “By correcting this disparity, we are not only providing individuals with better access to loans, but also working to stimulate economic growth. The countless Alaskans that use credit unions will have more access to financial services to meet their small business needs. A simple fix, resulting in a major win for those seeking financial assistance.”