ICUL director testifies in D.C.

Carl Sorgatz, ICUL Legislative Committee liaison and CEO of Hawthorne CU, Naperville, testified on behalf of CUNA on the beneficial impact of credit union business lending before the U.S. House Small Business Sub-committee on April 30, 2008.

Sorgatz outlined the important role his and other credit
unions play for small business access to capital to help stimulate the U.S. economy during the current credit crunch.

Sorgatz also urged lawmakers to support H.R. 1537 (CURIA) provisions, which remove the arbitrary business lending cap for federally insured credit unions to free-up over $5 billion dollars for business development; the Credit Union Regulatory Relief Act (H.R. 5519), which contains several provisions that would permit credit unions to make more small business loans available, although it does not address the overall cap; and the Credit Union Small Business Lending Act (H.R. 1849), which recognizes the need to enhance credit union business lending
through SBA programs.

He testified that despite the apparent “credit crunch” with respect to small business and other lending, the chief obstacle for credit union business lending is not the availability of capital.

“Credit unions are in general very well capitalized. Rather, the chief obstacle for credit unions is the arbitrary statutory lending limits imposed by Congress in 1998 and the burdens associated with many of the SBA (Small Business Administration) lending programs,” Sorgatz said.

The hearing sub-committee chairman, Melissa Bean (D-8 Barrington), provided a warm welcome to Sorgatz and appreciated CUNA’s testimonial before the Small Business Panel on “The Effect of the Credit Crunch on Small Business Access to Capital.”

Other witnesses included the National Association of Home Builders, the Independent Community Bankers Association and the U. S. Women’s Chamber of Commerce.

© 2008 Illinois Credit Union League. All rights reserved.