Colorado moves forward with credit union cap increases

Colorado Senator Mark Udall is moving forward with a bill that will help the alternative credit industry, the Summit Daily News reports. The Colorado senior senator will introduce a bill that will raise the caps on credit union lending, which he believes will increase small business jobs and expand borrowing among consumers and entrepreneurs. Currently, credit union caps stand at 12.25 percent. Udall's seeks to push that limit to 27.5 percent of a credit union's total assets. Named the Small Business Lending Enhancement Act, Udall's measure could add a significant source of funding to the market. "[I]f there are credit unions with capital to lend, and small businesses in their communities that need loans to spur job growth - why not allow our economy to grow?" Udall stated in a press release. "My bill would free up capital - without costing taxpayers a dime - so that credit unions can loan to small businesses that need to make payroll, buy inventory or expand their businesses." The Credit Union National Association told the Daily News that Udall's bill could infuse $10 billion worth of small business credit into the market, with $200 million going to Colorado specifically.