[Congressional Record Volume 159, Number 53 (Thursday, April 18, 2013)]
[Extensions of Remarks]
[Page E499]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTORY STATEMENT FOR THE SMALL BUSINESS DISASTER RELIEF AND 
                              RECOVERY ACT

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                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                        Thursday, April 18, 2013

  Mrs. CAROLYN B. MALONEY of New York. Mr. Speaker, I rise to introduce 
a bill that would exempt loans from the credit union member business 
lending cap that are made after federally-declared natural disasters, 
injecting much-needed funds into local communities when they need it 
most.
  Superstorm Sandy caused enormous destruction throughout the 
Northeast, and wildfires, hurricanes, and tornados have wreaked similar 
havoc across the country. Federal disaster assistance that flows after 
each declaration of a disaster is essential but not sufficient to get a 
region back on its feet. I've heard from many small businesses about 
their struggle to recover from Sandy. Counties in eleven states and the 
District of Columbia were declared major disaster areas by the 
President during the storm.
  That is why this bill is so important. It will exempt credit union 
'member business loans' from the normal lending cap for a period of up 
to five years after a natural disaster declaration. This will enable 
credit unions to temporarily lend above their cap in any area where 
there had been a federal declaration of disaster.
  Exempting these loans from the cap will open up a new source of 
credit for struggling small businesses and untie the hands of credit 
unions that want to provide that assistance. Credit unions are key 
members of the communities they serve and want to be there for small 
businesses who need assistance recovering from natural disasters. This 
bill will provide businesses a source of capital to help them rebuild 
and recover.
  Currently, under federal regulations, Federal Credit Unions are each 
subject to a ceiling of 12.25% of their assets in business loans to 
their members. As many credit unions approach that cap, they are unable 
to provide needed capital to their communities.
  I urge my colleagues to support this important legislation to help 
areas that so badly need access to capital to help them recover.

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