[Congressional Record (Bound Edition), Volume 157 (2011), Part 4]
[Senate]
[Pages 4779-4780]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          CREDIT UNION LENDING

  Mr. UDALL of Colorado. Madam President, I urge the Senate to free up 
capital for small businesses to allow them to grow, expand, and begin 
hiring again. Unfortunately, there is a burdensome Federal regulation 
that currently limits the number of small business loans credit unions 
can make to family entrepreneurs. Credit unions have money to lend, and 
they know small businesses in their communities. They know these 
businesses desperately wanted to jump-start the economy by taking out 
new loans to grow their companies and hire more workers.
  Two weeks ago I came to the floor to ask consideration of a 
bipartisan amendment, No. 242, which I offered to the underlying bill 
to raise this cap I have alluded to on small business loans. The 
amendment would simply get government out of the way and allow credit 
unions to increase small business lending in their communities without 
costing American taxpayers a dime.
  I wish to repeat that. It would not cost American taxpayers a single 
dime.
  When I spoke previously in support of this amendment and asked for 
the amendment to be considered, the chairman of the Small Business 
Committee, Senator Landrieu, objected to my request and indicated that 
Senator Johnson, chairman of the Senate Banking Committee, opposed the 
amendment. I wish to clear up some misinformation the American people 
may have heard at that time and thank Senator Landrieu for removing 
from the Congressional Record her assertion that Chairman Johnson 
opposed my amendment.
  I understand that as new chairman of the Banking Committee, Senator 
Johnson has an interest in revisiting this legislation which I 
negotiated with the Treasury Department, the National Credit Union 
Administration, and the previous chairman of the Banking Committee, 
Senator Chris Dodd. But I wish to make it clear in the Congressional 
Record that Chairman Johnson does not in fact oppose the amendment.
  I also wish to clear up some confusion related to the $30 billion 
small business lending fund established as a part of the Small Business 
Jobs Act which arose when I tried to call up my amendment 2 weeks ago. 
As I pointed out in my original remarks, banks were given access to the 
small business lending fund, but credit unions have not been allowed to 
expand their small business lending because of the very cap on loans my 
amendment addresses.

[[Page 4780]]

  In our discussion on the Senate floor, it was pointed out to me that 
credit unions had been asked if they wanted to participate in the small 
business lending fund, but the credit union industry had turned down 
the invitation. I was unaware of such an offer; I appreciate being told 
of it. But unlike many banks, most credit unions do not need extra 
capital in order to make loans, which is what the small business 
lending fund intended to provide. Rather, as I have said, most credit 
unions currently have capital to lend to small businesses, but, 
unfortunately, they are being prevented from making those loans due to 
the arbitrary cap limiting their small business lending to no more than 
12.25 percent of their assets.
  It is no wonder credit unions didn't have an interest in the $30 
billion bank fund because they don't need the money and couldn't use it 
anyway because of this burdensome cap that is put on small business 
loans.
  I appreciate the opportunity to discuss the confusion about amendment 
No. 242. I thank the chairman and ranking member for their great work 
on the underlying bill which is important to my home State of Colorado.
  I wish my amendment would get a vote today, but regardless of what 
happens I will continue to work with Chairman Landrieu, Ranking Member 
Snowe, and the rest of my colleagues to find innovative means to free 
up credit for small businesses in a responsible way.
  On a final note, the Presiding Officer hails from a great State that 
has significant banking and credit union sectors. We know they don't 
always see eye to eye, which is the root of the objection to my 
amendment. Yet they still manage to operate side by side to serve the 
community's credit needs. They both make up the fabric of America and 
continue to grow our economy. It is simply the way we do business in 
the United States.
  I wish to highlight that spirit, which is in stark contrast to the 
kind of divisive politics that have been brewing in America; one that 
furthers disagreements and draws ideological lines in the sand and, 
frankly, sows disrespect at the expense of shared interests and 
collective prosperity. The American people are seeing a disappointing 
example of that today. There is a vocal minority outside this very 
Capitol demanding acrimony and a combative approach for Members of 
Congress which I believe--and many of us believe--in the end will 
further disable our capacity to get the economy back on its feet.
  While this is happening outside, many of us are inside doing the 
people's business. We treat each other with respect, and we are working 
on a bill to help small businesses invest in R&D. We are also 
negotiating a compromise to keep our government running.
  That is the American way I have always known. I applaud my colleagues 
who remain committed to working together.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll. The legislative 
clerk proceeded to call the roll.
  Mr. DURBIN. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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