Enhancing Small Business Lending

S. 2231 Small Business Lending Enhancement Act of 2012 S. 2231 is a bipartisan bill that would help credit unions across the country promote small business growth and economic development opportunities D0 Credit Union Timeline OO H. R. I151 passes, capping lending at 12.25% of credit union total assets No lending limit Business lending cap imposed The first credit union The Federal The National Credit S. 2231 will raise the in the United States is formed in New Hampshire Credit Union Act Union Administration business lending cap becomes law, (NCUA) is established of credit unions to 27.5% creating the federal credit union charter ?? What Will Change if S. 2231 Passes ? ? Currently, legislation restricts credit union business lending to 27.5% 12.25% of the total assets of the credit union 12.25% If passed, S. 2231 would increase the credit union business lending cap to from 12.25% to 27.5% Passing S. 2231 Will Create 140,000 Jobs = 1,000 jobs Passing S. 2231 Would Infuse $13 Billion into the U.S. Economy O = $1 million More than the combined state spending for New Hampshire & Idaho in 201 %D S$$ Cost to Taxpayers SSS Unlike banks using the TARP bailout, passing S. 2231 will not cost taxpayers anything and will not increase the size of government Small Business Loan Approval Rate (Feb. 2011- Feb. 2012) Business loans approved by banks Business loans approved by credit unions Unapproved business loans 1 0% VS 50% Banks Credit Unions Since the start of the financial crisis, banks are making Banks say they don't want credit unions to make business loans because credit unions don't know how to manage them effectively less small business loans. Credit unions have successfully filled the gap that banks have left Business Loan Growth From start of crisis in Dec. 2007 to Dec. 2011 Credit Union Defaults vs Bank Defaults Percentage of business loan defaults by credit unions & banks Average since 1997 3.0 Banks Banks Banks: 0.91% Credit Unions Credit Unions: 0.23% Credit Unions +44.91% 2.5 2.0 Start of the financial crisis 1.5 1.0 0.5 0.89%! 0.0 Banks say S. 2231 will starve their loan growth Current Market Share of Business Loans -14.86% Banks Credit Unions 10% 96% 90% Currently, the average size of a small business loan from a credit union is $219,886 Current If Passed (projected) Since 2004,credit unions ben E largest SBA lenders have been 93 Million Americans Belong to Credit Unions =2 million people Americans Employed by Small Businesses 500 employees or less, excludes farms (2006) 51% 60.2M Sources: ncua.gov, cuna.org, fdic.gov,census.gov, tcul.coop, generations usgovernmentspending.com pearanalytics analytics insights intelligence federal credit union 8661 1970 1934 6061 ocoCololaola