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Sticking with jobs the nation's credit union says that they can help create more -- by changing rules that would allow them to increase their lending abilities.
And they've been -- plenty of lending -- to small businesses.
Really who can't get any money from banks are gonna credit unions for more now.
I'm joined by bill Cheney the CEO of the credit union net national association.
The bill we we we know that the the credit unions have been pushing.
That -- so that they can live a larger percentage of what they did the money that they have on deposit.
How's that going give us an update on the.
Well thank you very much for having me and and we're making progress we have bills pending in both the senate and the House of Representatives.
It would raise the amount of of business anemic ratings can do.
And let me just say -- background prior to 1998 there was no cap or limit on credit union business -- -- law was changed.
In 98 and it was a cap placed on lending at twelve and a quarter percent of assets so.
-- -- direct direct their bill why why did that happen what what was they have that this threat.
Well that was part of changes that were made to feel the membership.
Rules having to do with the Supreme Court ruling but -- but the cap.
Before then didn't exist and that twelve and a quarter percent cap today.
Is restraining lending and so what this legislation would do the senate version.
And the house version would not eliminate the -- -- raise the cap from twenty from twelve and a quarter percent.
The 27 and a half percent and that frees up in the first year thirteen billion dollars of capital for small business.
That's coming from credit unions not from taxpayers we know we need jobs to stimulate the economy.
And we have no cost stimulus that to go out and help small businesses.
We estimate in the first year we can create small businesses to create over a 140000.
Jobs in that's seems to make sense right to help this economy along.
In a bill I got to tell you this is and that's beyond -- that that who -- -- this say no right now banks are lending small businesses they're drowning.
Who would be against lifting the limit.
The only people were aware of that are against that are banks and that's disappointing to us because the banks aren't lending since December of 2007.
The height of the financial crisis.
-- today pretty -- small business lending increased 38% during that period.
-- small business running declined 5%.
So guardians are lending but now we're hitting the cap and we have.
Over 300 pretty unions that are getting close to the cap today.
They represented 51% of the lending to small businesses by credit unions all across this country so we're ready to do more we just need congress to act.
To help -- -- Well bill I wanted to help me out there what -- it suited to demystify credit unions.
I was a member of a credit union when I was in the US air forces since then I've never even considered opening an account at one.
Why is that and what can you do the change people's mind like month.
Well credit unions really are the best choice for financial services for American consumers there cooperatively on they're not for profit their -- by the member so.
Whereas banks have to operate their institution for the benefit of their shareholders there's nothing wrong with that.
Freddie and strong -- their members of the focuses on the member and the results of that is higher rates on savings.
Lower rates on loans and lower fees.
We actually have done some work to try and educate consumers.
About credit unions through a site called a smarter choice dot org and there's a lot of great information there about credit unions it really is a better deal for consumers in everybody's looking for ways to save money these days and I certainly would encourage.
Your viewers to find a credit -- they can join.
I gotta -- this might have been the most no brainer interview I've ever been a part of I think the lot bill Cheney CEO of the Credit Union National Association we appreciate your time and go -- -- with that.
Who's coming up what more -- you watch before the close and taxes for the burning profits at ten salons across the country we'll tell you how the government is defending.
This tax -- small businesses next on Fox Business.
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