Manchester, NH—Raising the member business lending (MBL) cap from 12.5% to 25% of credit union assets could free up $10 billion nationwide for small businesses and create as many as 108,000 new jobs in the first year alone. That’s one of the key points St. Mary’s Bank CEO Ronald H. Covey covered at a Congressional hearing February 26 about H.R. 3380, the Promoting Lending to America’s Small Business Act.

“H.R. 3380 is a job creation bill that would not cost the taxpayers a dime and would not increase the size of government. It is a smart bill that will help small businesses,” said Covey.

The push for raising the lending cap is timely, given that many banks have clamped down on lending to small businesses, in some cases reducing credit lines or declining credit altogether. St. Mary’s is one of many credit unions that has the capital to fill the gap, but is quickly approaching the MBL limit. “We have the resources to continue promoting business growth in our communities,” said Covey. “We want to serve their needs. Limiting our cap to 12.25% does a great disservice to business owners everywhere, and subsequently stymies the kind of economic stimulation and job growth this country truly needs right now.”

To view a webcast of the Congressional hearing or access written testimony, visit The House Committee on Financial Services web site: http://www.house.gov/apps/list/hearing/financialsvcs_dem/hr_012910.shtml